Question

The u.s. dollar is defined as: commodity money, because it is widely used to buy commodities. fiat money, because it was established as money by an act of law. faith money, because we trust the government to defend its value. commodity-backed money, because it is convertible to gold.

Answer 1

The answer to this would be the second option. I can say that the US dollar falls under the category of FIAT MONEY. Fiat money is any money that is accepted as a form of payment wherein its value depends upon the demand and supply of the market, and not with its material. Hope this answer helps.