The U.S. dollar is a currency made of low-cost materials. It is valuable only
because it is recognized by the U.S. government, which is a powerful global
authority. This means that the U.S. dollar serves as which type of money?
O A. Fiat money
O B. Commodity money
C. Representative money
O D. Currency money

Respuesta :

Answer:

A. Fiat money.

Explanation:

Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.

Answer:

a. fiat money

Explanation:

just took the test :P