One problem with fiat money,as compared to commodity money,is that:
A)more resources are used to create fiat money.
B)there is frequently too little fiat money available.
C)there is a greater potential for inflation with fiat money.
D)fiat money must be turned in to the government to receive the commodity on which it is based.
E)fiat money is less divisible than commodity money.

Question

Quizplus · Accepted Answer

Fiat money is not backed by a physical commodity like gold, making it more susceptible to inflation as the government can print as much as they want, leading to a decrease in the value of the currency.

One Problem with Fiat Money,as Compared to Commodity Money,is That