Which of the following statements about fiat money is false? choose one: a. the use of a fiat money is authorized by the government. b. the use of a fiat money permits easy expansion of the money supply. c. fiat money has little to no intrinsic value. d. fiat money is backed by a commodity. e. fiat money can serve as a medium of exchange.

D. Fiat money is backed by a commodity.

Explanation:

Fiat money is legal tender issued by a government that is not backed by a commodity such as gold. The issuing government backs fiat currency. The government though the central bank has better control of fiat money as it is the issuer.  The value of a fiat currency depends on the stability of the issuing government, and its supply and demand.

Fiat currency differs from commodity money, which is currency backed by commodities such as gold or silver.  Currently, the Us dollar, the Euro and a majority of world currencies are fiat money. Before 1971, the US dollar was commodity money backed by standard gold.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy