Answer-Which statement correctly describes 'fiat money'?

Fiat money is currency issued by governments that is not backed by any physical commodity but rather relies on the trust and authority of the issuing government.

Question

Which statement correctly describes "fiat

money"?

A Currency backed by a physical commodity like gold or silver.

B Government-issued currency not backed by a commodity.

C Currency whose value is determined by international trade agreements.

D Currency affected by geopolitical events.

Practice Next

More Economics Questions

Pradhan Mantri Ujjwala Yojana is related with
The law of demand is based on the assumption that people will:
Goods whose demand increases as their price rises are known as?
Identify the true characteristics of a Capital Good.

A. It is a produced durable output of a man-made process.

B. It again a...
Which sector contributes the most to India's GDP?
From which country did India adopt the concept of economic planning?
Recently Mastercard has appointed who among the following as its Brand Ambassador/Ambassadors ?
In which year were Economic Reforms launched in India?
Who coined the term “Hindu Rate of Growth”?
In the fiscal year 2022-23, what was the Year-on-Year (YoY) growth rate of India's services sector?

Relevant for Exams:

SSC MTS

Which statement correctly describes "fiat

Solution

Relevant for Exams: