Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.
A)commodity
B)fiat
C)electronic
D)funny

Question

Quizplus · Accepted Answer

Fiat money is currency that has been declared legal tender by the government, but its value is not backed by a commodity such as gold. It cannot be converted into precious metals or coins, and its value is determined by supply and demand in the economy. Electronic money refers to any form of money that is exchanged electronically, such as bank deposits or cryptocurrencies. Funny money is slang for counterfeit currency.

Paper Currency That Has Been Declared Legal Tender but Is