In theory,any object ________ could play the role of fiat money.
A) that has an unlimited demand
B) for which demand is limited
C) in unlimited supply
D) in limited supply

Question

Quizplus · Accepted Answer

Fiat money derives its value from the government's backing and its limited supply, which gives it value. Therefore, any object that is in limited supply, such as gold or currency, can potentially play the role of fiat money. Objects in unlimited supply, such as air or water, cannot serve as fiat money. Additionally, the level of demand for an object does not determine whether it can be fiat money.

In Theory,any Object ________ Could Play the Role of Fiat