Asked by Carli Cacas on Jun 12, 2024
Verified
Which of the following best represents fiat money?
A) The euro
B) A gold bar
C) Monopoly money
D) Baseball cards
Fiat Money
Currency that a government has declared to be legal tender, but it is not backed by a physical commodity.
The Euro
The official currency of 19 out of the 27 European Union countries, which forms a significant part of the world's economy.
- Familiarize yourself with the basic tasks that money performs and its essentiality in the economy.
Verified Answer
MA
Meron AbrhamJun 18, 2024
Final Answer :
A
Explanation :
Fiat money is a type of currency that is not backed by a physical commodity but rather by the government that issued it. The euro is an example of fiat money, as it is backed by the confidence in the European Central Bank and the governments of the Eurozone, rather than a physical good like gold.
Learning Objectives
- Familiarize yourself with the basic tasks that money performs and its essentiality in the economy.