When currency is not backed by precious metals but has value simply because people accept it as money, then the country has what type of money system?
A) reserve
B) commodity
C) fiat
D) mitered

Question

Quizplus · Accepted Answer

Fiat money is a type of currency that is not backed by any physical commodity, such as gold or silver, but is made legal tender by government decree. Its value comes from the trust and acceptance of the currency by the people who use it.

When Currency Is Not Backed by Precious Metals but Has