Ask us of the following best explains the difference between fiat money and commodity money?

Fiat money is currency that has no intrinsic value and is not backed by a physical commodity; its value is derived from government regulation and public trust. In contrast, commodity money is based on the value of a physical good, such as gold or silver, which has intrinsic value. Essentially, fiat money relies on legal tender status, while commodity money is tied to tangible assets. This fundamental difference affects how each type of money functions in the economy.