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Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

a. commodity
b. fiat
c. electronic
d. funny

1 Answer

3 votes

Answer:

Option B

Step-by-step explanation:

Fiat money is a legal decree by the government, a legal tender but in-convertible paper money or currency . The word Fiat comes from a Latin meaning (from research) , which means "let it be" or "let it be done" its accepted based on the supply and demand attached to a commodity, so the government uses it to replace the legal tender paper money that is convertible.

So there fore, Fiat money is a paper currency that has been declared legal tender but in-convertible into coins or precious metals like gold or silver.

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