Economics · Monetary Economics
Fiat money is backed by legal tender power, which means:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The same currency can be immediately withdrawn by simple government orders.
- 2The acceptance of the currency is enforced and mandated by law.✓
- 3In the eyes of the law, this money belongs strictly to a specific individual.
- 4In the eyes of the law, it is not black money.
Correct answer
The acceptance of the currency is enforced and mandated by law.
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