Fiat Money

Fiat Money is Money...

• a) ...without intrinsic value.

• b) ...with intrinsic value.

• c) ...that can be also consumed.

• d) ...this is not declared by the government as legal tender

Paper currency is an example of ...................

• barter system

• Commodity money

• Fiat money

Fiat money's value originates from government decree

• True

• False

The production of fiat money is mostly controlled by

• citizens

• rich people

• government

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money

The value of fiat money is back by ........................

• gold

• silver

• none of the above

Which type of money exists in the United States?

• Commodity money

• Trade money

• Representative money

• Fiat money

Currently, what is U.S. money backed by?

• Frankincense

• Gold

• Silver

• Trust that it is worth something

Paper money NOT backed by gold is an example of _____ money.

• commodity

• digital

• fiat

• gold standard

What is the primary characteristic of fiat money?

• It has intrinsic value

• It is backed by a physical commodity

• It is declared legal tender by the government

• It can be exchanged for gold