Fiat money:

A) has value because people accept it.
B) has a high intrinsic value.
C) is backed by commodity reserves.
D) is money because of its metallic content.
E) is frequently clipped.

Fiat money is currency that does not have intrinsic value but is given value by government decree or law. The only reason people accept it as payment is because they trust that it can be used to purchase goods and services, making it a widely accepted medium of exchange.