Fiat money is currency that is not backed by a physical commodity with intrinsic value, such as gold. Its value relies on the faith and trust of the government issuing it and the users accepting it as a means of payment. Most modern currencies are fiat money, including the US dollar, euro, and Japanese yen.

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Fiat Money Is

Question 48

Multiple Choice

Fiat money is:

A) money based on the value of a commodity, such as a car
B) money without intrinsic value
C) commodity money
D) paper or plastic money under gold standard

Correct Answer: