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The U.S. Dollar can best be described as: a. commodity money. b. reserve money. c. fiat money. d. commodity-backed money.
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Explain why the one-dollar-bill in your pocket/purse is a fiat money.
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Fiat money: A. is not backed by any precious commodity. B. can be exchanged for gold. C. is backed by gold, but cannot be exchanged for it. D. is not legal tender. E. can be backed by gold or silver.
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Fiat money is: a. money backed by gold. b. something more valuable as a monetary instrument than as commodity. c. anything that the government says is money. d. All of the above
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