Question

question 5 of 11
what is fiat currency backed by?
select an answer from the options below.
a gold or silver
b trust in the government issuer
c precious metals
d physical commodities

Explanation:

Fiat currency is a type of currency that is not backed by a physical commodity like gold or silver. Its value is derived from the trust and confidence that the public has in the government or authority that issues it, as well as the stability of the issuing country's economy. Options A, C, and D all refer to physical commodities, which back commodity-backed currencies, not fiat currencies.

Answer:

B. Trust in the government issuer