Answer-Which statement correctly describes 'fiat money'?

Fiat money is currency issued by governments that is not backed by any physical commodity but rather relies on the trust and authority of the issuing government.

Question

Which statement correctly describes "fiat money"?

A Currency backed by a physical commodity like gold or silver.

B Government-issued currency not backed by a commodity.

C Currency whose value is determined by international trade agreements.

D Currency affected by geopolitical events.

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