Question

1. federal reserve notes are ______, meaning they have value due to government decree.

fiat money

commodity money

legal tender

barter

Explanation:

Fiat money is money that has value because the government says it does (by decree). Commodity money has value due to the commodity it is made of (e.g., gold - backed money). Legal tender is a type of payment that by law must be accepted for debts. Barter is the exchange of goods or services without using money. Since the question emphasizes value due to government decree, fiat money fits.

Answer:

fiat money