Fiat money is moneyGroup of answer choicesbacked by gold or silver.that can be converted to gold or silver.because a government says it is.backed by land.
Question
Fiat money is moneyGroup of answer choicesbacked by gold or silver.that can be converted to gold or silver.because a government says it is.backed by land.
Solution
Fiat money is money because a government says it is.
Here's a step-by-step explanation:
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Fiat money is a type of currency that a government has declared to be legal tender, but it is not backed by a physical commodity like gold or silver.
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The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the value of a commodity backing it.
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Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.
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This contrasts with money backed by gold or silver, known as commodity money, where the value is based on a fixed amount of a commodity.
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So, fiat money is "money because a government says it is."
Similar Questions
Fiat money has value because:A.it is assigned value by a government.B.it can be exchanged for specific goods.C.it is made of a valuable material.D.it can be used for food or shelter.
Which of the following is the best description of fiat money?Group of answer choicesCheque accounts and debit cards.Coins made of gold and silver.Paper money that can be redeemed for gold or silver.Legal tender that has no intrinsic value.
The primary reason why fiat money has value is becauseQuestion 24AnswerSelect one:a.banks act as intermediaries and, through the money multiplier process, prevent the money from losing value.b.the central bank always ensures that the money has value.c.it is backed by a precious metal.d.the government has a monopoly of force and declares the money legal tender.e.in a growing economy demand for government money will always exceed the demand for private money
Does the gold standard perform better against fiat money?
Money that some authority has declared legal tender is called:Question 3Select one:a.fiat money.b.currency.c.convertible paper money.d.commodity money.
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