Question

Fiat money has A. little to no intrinsic value and is authorized by the central bank or governmental body. B. a great intrinsic value that is independent of its use as money. C. little to no intrinsic value but is backed by the quantity of gold held by the central bank. D. ​value, because it can be redeemed for gold by the central bank.

Answer 1

A. little to no intrinsic value and is authorized by the central bank or governmental body.

Step-by-step explanation:

Fiat money is money that has little to no intrinsic value and is authorized by the central bank or governmental body.

It is usually established by the government as legal tender and its value is maintained by the government.

Commodity money has a great intrinsic value that is independent of its use as money.

Answer 2

The answer is A. Fiat money has little to no intrinsic value and is authorized by the central bank or governmental body.

Step-by-step explanation:

Fiat money is the money that is issued by a country's government/ reserve bank whose value will be decided by the supply and demand of the money in the market, the country economic/social/political stability and potential.

Fiat money is not backed by commodities ( such as gold, silver) which secures its exchange power for a specific amount of commodities; it has no guarantees on its value ( i.e purchasing power), as a result has no intrinsic values itself. Instead, its value comes from the agreements of exchanging parties and the governance of its supply by the central bank.

Most countries' currencies nowadays are classified as fiat money, such as US dollar, Euro, Yen...