Fiat money
A) was initially used by an automobile manufacturer.
B) is made out of commodities such as gold or silver.
C) does not necessarily have any intrinsic value but has been declared by a government to be money.
D) loses its value over time.

Question

Quizplus · Accepted Answer

Fiat money is not backed by a commodity, such as gold or silver, and derives its value from the government's declaration and people's faith in its ability to be used as a medium of exchange. Its value is not based on its intrinsic worth and it does not deteriorate in value over time.

Fiat Money