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

Question

Quizplus · Accepted Answer

Fiat money is money that is declared legal tender by a government, but does not have intrinsic value (i.e. it is not backed by a physical commodity such as gold or silver). Its value is determined by supply and demand and the government's ability to maintain its value through monetary policy.

Fiat Money Means