What type of money is guaranteed by the trustworthiness of the government rather than having intrinsic value?

Fiat money is a type of currency that is not backed by a physical commodity, such as gold or silver, but rather derives its value from the trust and confidence that people place in the government that issues it. This trust enables fiat money to be used as a medium of exchange, a unit of account, and a store of value within the economy.

Unlike commodity money, which has intrinsic value due to the physical materials from which it is made, fiat money has no inherent value. Its value is maintained by the stability of the issuing government, the demand for the currency, and the government's ability to maintain control over its supply. Concepts such as inflation, governmental policy, and economic conditions can significantly affect the value of fiat money, further highlighting its dependency on trust.

The other types of money mentioned, such as commodity money and gold-backed currency, derive their value from the intrinsic worth of the commodity they represent. Cryptocurrency, while a modern form of money, typically operates on decentralized blockchain technology and its value can be highly volatile and driven by market demand, not a government guarantee. Therefore, the defining characteristic of fiat money is its reliance on governmental trustworthiness, which makes it the correct answer.