Option E, Fiat money includes currency, checking deposits and credit cards
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<u>Explanation:
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Fiat money has been the currency issued by the government which is not sponsored by actual resources like gold or silver, but by the country that approved it.
Instead of the price of a product, the valuation of fiat money is extracted from the connection between production and consumption and stability of the authorizing state. Fiat currencies, including that of the U.S. dollar, euro, and other major international currencies seem to be the most common paper currencies.
One risk for fiat money is to print too many of those by regimes that contribute to hyperinflation.
Fiat money is government-supported monetary money and is treated as a legal tender. The capital is provided by physical goods such as valuable metals or instruments including checks and credit cards. The world currencies, backed by gold, were symbolic until 1971.
