There are advantages and disadvantages to using fiat money. Which of the following benefits of fiat money comes with a potential risk to the economy as a whole?(1 point)

Question

Responses

Fiat money can withstand repeated use.
Fiat money can withstand repeated use.

Governments have greater control of the money supply.
Governments have greater control of the money supply.

Valuable resources are not wasted backing fiat money.
Valuable resources are not wasted backing fiat money.

Fiat money can be easily transported.

Answer 1

The benefit of fiat money that comes with a potential risk to the economy as a whole is:

Governments have greater control of the money supply.

While this allows for flexibility in managing the economy, it also poses the risk of inflation or hyperinflation if the government prints too much money.