Fiat money is:
A) any form of money that can be legally exchanged into a fixed amount of an underlying commodity.
B) money created by rule.
C) money used for the exchange of large commodities.
D) any form of money that is more readily accepted than commodity-backed money.

Question

Quizplus · Accepted Answer

Fiat money is a currency that is declared by a government to be legal tender, but it is not backed by a physical commodity like gold or silver. It is created by rule or decree from the government or central bank, and its value is based on supply and demand, market stability, and the overall strength of the economy.

Fiat Money Is