'Fiat money':
A)has no or very little value except as money.
B)is rarely used in modern economies.
C)functions well only if it can be redeemed for gold or other precious metals.
D)serves well as a medium of exchange, but not as a store of value.

Question

Quizplus · Accepted Answer

Fiat money is currency that is declared legal tender by a government despite lacking intrinsic value. Its value is based on the faith and credit of the government that issues it. Fiat money only holds value as a medium of exchange and is backed by the government that issues it.

'Fiat Money