When government intervention causes a currency to lose all its value and become worthless, this condition is called:

• A. Currency collapse
• B. Fiat money failure
• C. Hyperinflation
• D. Depreciation

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the key terms related to currency value and government intervention. 'Currency collapse' refers to a rapid loss of value, but it is a general term.
2. Step 2: Recognize that 'Depreciation' means a gradual decrease in currency value relative to others, not a total loss of value.
3. Step 3: 'Hyperinflation' is an extremely high and typically accelerating inflation rate, which can lead to currency losing value but is a process rather than the final condition.
4. Step 4: 'Fiat money failure' specifically describes the situation where government-issued currency loses all its value and becomes worthless due to loss of confidence or excessive money printing.
5. Step 5: Conclude that the condition where government intervention causes a currency to become completely worthless is best described as 'Fiat money failure'.