Economics · Money and Banking
Which of the following statements about fiat money is incorrect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Excessive printing of fiat currency can create hyperinflation
- 2The US dollar is not a legal tender✓
- 3Fiat currency gives the central bank more control over the economy
- 4Fiat currency is government-issued currency that is not backed by a physical commodity such as gold
Correct answer
The US dollar is not a legal tender
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