Question

What condition is necessary for a fiat money system to work? customers with checking accounts cannot earn interest on those accounts. money owed must be paid on time. the government must control the money supply. banks must hold sufficient gold to cover any paper money they give out?

Answer 1

The government must control the money supply.

Step-by-step explanation:

Answer 2

What condition is necessary for a fiat money system to work? The government must control the money supply. Fiat money is not physical money like bills or coins, fiat money solely exists because if supply and demand of a good or service. This is a currency that the government has declared legal but it is not backed by any physical commodity. Due to that, the government has to be in control of the money supply for the fiat system to work.