5 Questions
Which type of money is currently used in most countries, according to the text?
Fiat money
What distinguishes fiat money from representative money?
Fiat money has no intrinsic value and is not tied to a physical commodity.
In the context of money supply, what role does the central bank typically play in a fiat money system?
Controlling the supply and circulation of fiat money
Which type of currency was historically backed by a specific amount of gold and could be redeemed for that gold?
Gold certificates
What is a key characteristic of fiat money compared to gold-backed currencies?
Fiat money is not redeemable for a fixed amount of gold.
Learn about fiat money, a type of government-issued currency that is not backed by a physical commodity like gold. Understand the concept and significance of fiat money.
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