What might cause a change in the value of fiat money? a change in the value of commodities a change in government regulations
Question:
a change in the value of commodities
a change in government regulations
a change in materials used to make money
a change in individuals’ spending habits
Answers
a change in government regulations
Explanation:
Fiat money refers to any money or currency without intrinsic value but which the government declares as legal tender such as gold and silver. Fiat money is determined by the government and it keeps its value as a result of government stability and the nation's economy. A change in government regulations can cause a change in the value of fiat money due to the stability of government and the economy.
a change in government regulations because the government maintains this value
A change in government regulations.
Explanation:
A change in government regulations
Explanation:
Fiat money is a non-convertible and non-backed bond to any physical asset (such as precious metals, gold and silver), but has monetary value commonly accepted in an economy. That is, unlike commodity currencies and currencies, it is a good without intrinsic value, but that has intangible value, coming mainly from its issuer. This type of currency may fluctuate in value with a change in government regulations.
Fiat money represents a declaration that the money comes from a good institution. It is establish by an order from the government. If that government is legitimate and prosperous then its values is high. If the government is corrupt or suffering economic and financial decline then its value goes down.
The correct answer is B) a change in government regulations.
What might cause a change in the value of fiat money is a change in government regulations.
Fiat money is the kind of money or currency that does not have the support of a tangible value such as silver or gold. It is the market that determines the value of money. That is why a change in government regulations might cause a change in the value of fiat money. If the government decides to modify the interest rates or takes another economic measure to solve a contingency, the decision can affect fiat money.
The other options of the question were A) a change in the value of commodities. C) a change in materials used to make money. D) a change in an individual's spending habits.
The value of fiat money is determined by the supply and demand. It is not supported by a commodity like gold or silver but rather on how much trust is put on it. If the people begin to doubt the currency then it will lose its value.
I believe the answer is: a change in government regulations
Fiat money refers to the type of currency that usually do not have intrinsic value, but would suddenly have a value after a certain legislation.
For example, your $ 100 bill does not made from a material that is worth $ 100 in value (unlike gold coin. your dollar bill was made from paper)
But it suddenly have value after the government regulation mandated that it is worth $100 for exchange.
Inflation is the cause of a change in the value of fiat money. hope this helps you out. :-D
The supply and demand