Explanation:

Correct Option: (b) Explanation:  Option (b) is correct Supplementary notes: Fiat Money  Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.  The value of fi at money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money.  Most modern paper currencies are fi at currencies, including the U.S. dollar, the euro, and other major global currencies.  Because fi at money is not linked to physical reserves, such as a national stockpile of gold or silver, it risks losing value due to in fl ation or even becoming worthless in the event of hyperin fl ation.