Fiat money is the correct answer to the question.

Explanation:
Fiat money refers to currency that is issued by the government and is not backed by a physical commodity such as gold or silver. The value of fiat money is derived from the trust and confidence that people have in the government that issues it. Here is a detailed explanation of why fiat money is the correct answer:

1. Definition of Fiat Money:
- Fiat money is a type of currency that is declared by the government to be legal tender. It is not backed by a physical commodity, but rather by the trust and confidence of the people who use it.

2. Authority of the Government:
- Fiat money is issued by the authority of the government. This means that the government has the power to create and regulate the supply of money in the economy.

3. Legal Tender:
- Fiat money is declared to be legal tender, which means that it must be accepted as a form of payment for goods and services. This gives the government the ability to enforce the use of fiat money within its jurisdiction.

4. Value and Acceptance:
- The value of fiat money is derived from the belief and trust that people have in the government that issues it. As long as people have confidence in the stability and integrity of the government, they are willing to accept and use fiat money as a medium of exchange.

5. Control over Money Supply:
- One of the advantages of fiat money for the government is that it allows them to have control over the money supply. They can increase or decrease the supply of money in the economy to manage inflation, stimulate economic growth, or stabilize the currency.

6. Examples of Fiat Money:
- Most modern currencies around the world are examples of fiat money. For instance, the US dollar, Euro, British pound, Japanese yen, and many others are fiat currencies that are issued by their respective governments.

In conclusion, fiat money is currency that is issued by the government and is not backed by a physical commodity. Its value comes from the trust and confidence that people have in the government.