Money that has no value other 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

Fiat money has no intrinsic value and is only valuable because people believe it has value and the government accepts it as payment for taxes. It is not tied to any specific commodity or precious metal. Commodity money, on the other hand, has intrinsic value because it is made of a valuable material such as gold or silver. Choice C and D are incorrect because the presence or absence of value in money does not necessarily result in a return to a barter system or rapid inflation.

Money That Has No Value Other Apart from Its Use