Daniel Lives in Fiji

Multiple Choice

Daniel lives in Fiji.He learns that the Fijian dollar is an example of fiat money.This means that the Fijian dollar ________.

A) is worth exactly 1 U.S. dollar
B) fluctuates in value against other countries' currencies
C) can be exchanged at a fixed rate for a physical commodity like gold or silver
D) is not backed by a physical commodity like gold or silver