The value of fiat money:
A) comes from its intrinsic value.
B) is worth more as a commodity than its value as money.
C) comes from government decree.
D) means that it is more desirable than currency.

Question

Quizplus · Accepted Answer

The value of fiat money comes from government decree, meaning that it is deemed legal tender by the government and is accepted by the people based on their trust in the government and its ability to maintain the value of the currency. Fiat money does not have any intrinsic value or worth as a commodity. Therefore, choice C is the most appropriate answer.

The Value of Fiat Money