PRC-3 · Chapter 17 · Question 3 of 20
Modern paper currency has no intrinsic value (it is just printed paper), yet everyone accepts it because the government has officially declared it to be valid for settling all debts. This type of money is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Fiat money
Explanation
Fiat money is currency that lacks intrinsic value but is established as money by government decree or law (legal tender).
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