Fiat money means
A) that the money can be converted into gold.
B) only currency counts as money.
C) the government has decreed that something is money.
D) Italian currency.
E) that money's value does not change.

Question

Quizplus · Accepted Answer

Fiat money is a type of currency that is issued by a government and is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of.

Fiat Money Means