Fiat Money Has Value Because

question 70

Multiple Choice

Fiat money has value because:

• A)it is backed by gold.
• B)people believe it has value.
• C)it has intrinsic value.
• D)it is backed by silver.
• E)none of the above

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Definitions:

Bank Deposits

Funds that individuals or entities place into a banking institution's account for safekeeping, which can include savings, checking, and time deposits.

Cash Account

An account that records all transactions involving cash inflows and outflows for a company.

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically regarding accounts receivable.

Disbursements

Financial payments made by a business, including cash expenditures, payments on debts, or distribution of dividends.