Single Answer MCQ
Q-00015821
What does it mean when currency is called 'fiat money'?
1
It has intrinsic value
2
It is backed by gold
3
Its value is determined by government decree
4
It is accepted universally
Answer and Solution
Answer
C. Its value is determined by government decree
Solution:
Fiat money derives its value from government regulation or law, not from any intrinsic value or physical backing.
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