The best example of fiat money among the options provided is dollar bills.
Fiat money is a type of currency that is declared by a government to be legal tender, but it is not backed by a physical commodity like gold or silver. Instead, its value comes from the trust and confidence that people have in the government that issues it.
Here’s why dollar bills are the best example:
- Gold coins are not fiat money because they have intrinsic value due to the gold content.
- Business stocks represent ownership in a company and are not considered money.
- A valuable painting is an asset but not a form of currency.
- Dollar bills are fiat money because they are issued by the government and their value is not backed by a physical commodity but by the government’s declaration.
In summary, dollar bills are the best example of fiat money because they are government-issued, not backed by a physical commodity, and widely accepted as a medium of exchange.