ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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money in checking accounts.
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money that has intrinsic value on its own.
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money specially created from the Federal Reserve.
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money that is only valuable because the government says it is.
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money subject to the multiplier
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Detailed explanation-1: -A fiat money is a type of currency that is declared legal tender by a government but has no intrinsic or fixed value and is not backed by any tangible asset, such as gold or silver.
Detailed explanation-2: -Fiat money is physical money-both paper money and coins-while representative money is a form of currency that represents the intent to pay, such as a check.
Detailed explanation-3: -Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.
Detailed explanation-4: -Fiat money has value only because of the government as it manages that value or because any two parties in a transaction can agree on its value. Governments used to mint coins out of a worthy physical commodity, such as gold or silver, or print paper money that could be obtained for a set amount of a physical entity.