Our money has value because

Question

Quizplus · Accepted Answer

Money has value because people accept it as a medium of exchange in payment for goods and services. This is known as the concept of fiat money, which refers to money that has no intrinsic value but is accepted because a government has declared it to be legal tender. While money used to be backed by gold in the past, most modern currencies are fiat currencies. The supply of money is not unlimited, and it is not guaranteed by banks. It can be created through public and private debt, but this is not the primary reason for its value.

Our Money Has Value Because