Responses
Fiat money derives its value from government regulation.
Fiat money derives its value from government regulation.
Fiat money is rarely used as a method of payment.
Fiat money is rarely used as a method of payment.
Fiat money is hard to carry around because it is a commodity.
Fiat money is hard to carry around because it is a commodity.
Fiat money ties up resources like gold or silver.
1 answer
The statement that correctly describes a characteristic of fiat money is:
Fiat money derives its value from government regulation.
Fiat money is not backed by a physical commodity, but rather by the government that issues it, which establishes its value and legality for transactions. The other statements about fiat money are incorrect.
