Money that has no value apart from its use as money
A) is known as commodity money.
B) is known as fiat money.
C) will result in a return to a barter system.
D) will result in rapid inflation.

Question

Quizplus · Accepted Answer

Money that has no value apart from its use as money is referred to as fiat money. This means it has no intrinsic value and is not backed by a commodity like gold or silver. The value of fiat money is derived from the trust people have in the government or institution that issues it. It is not commodity money as it is not backed by a physical commodity. A return to a barter system is unlikely as long as there is a functioning monetary system. Rapid inflation can occur with fiat money, but it is not an inevitable result.

Money That Has No Value Apart from Its Use as Money