The value of fiat money is fundamentally determined by the:
A)reputation of the bank that holds it.
B)reputation of the person who holds it.
C)value of the gold or silver for which it can be redeemed.
D)value of the commodities for which it can be traded.
E)value of comparable stocks and bonds.

Question

Quizplus · Accepted Answer

Fiat money's value is fundamentally determined by the value of the commodities, goods, and services for which it can be traded, as it is not backed by a physical commodity like gold or silver.

The Value of Fiat Money Is Fundamentally Determined by The