Single Answer MCQ
Q-00045389
What does fiat money mean?
1
Money backed by physical commodities
2
Currency that has no intrinsic value but is accepted by society
3
Gold and silver coins
4
Money that must be exchanged for goods
Answer and Solution
Answer
B. Currency that has no intrinsic value but is accepted by society
Solution:
Fiat money is currency that has no intrinsic value and is not backed by physical commodities, but is accepted as a medium of exchange because the government maintains its value.
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