Legal tender proclaimed to be money by law is called

Question

Quizplus · Accepted Answer

Legal tender proclaimed to be money by law that has no intrinsic value and is not backed by a commodity such as gold or silver is called fiat money. Representative money (A) is backed by a commodity, such as gold or silver, and can be exchanged for a fixed amount of the commodity. Representative full-bodied money (C) is an old term used to describe money that is backed by a commodity, such as gold, that has the same intrinsic value as the money itself. Bimetallic money (D) is a monetary standard where the value of a currency is determined by the fixed ratio between two metals, such as gold and silver.

Legal Tender Proclaimed to Be Money by Law Is Called