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Which of the following most accurartely explains why fiat money has value?
Fiat money has value because the government declares that it has value.
Which form of money has value only because the governments says it does?
Fiat money
Why does Fiat money differ from commodity money?
Fiat money differs from commodity money because it is a more convenient form of money. It is easier to carry around paper money that it is to carry around gold or silver or other commodities. Fiat money is a promise to pay in the future while commodity money derives its value from the commodity of which it is made. Fiat money has value because the government declares that it has value. Fiat money only has value as a medium of exchange.
What is the difference between Fiat money and legal tender?
Fiat money is the money with no intrinsic value and its value is guaranteed by the monetary authority. Thus, Fiat money is with legal tender. People is bound to accept it.
Ask us of the following most accurately explains why fiat money differs from commodity money?
Fiat money has value bc the gov. declares that it has value.
What explains why Fiat money has no value in itself?
fiat money has only a single use as a medium of exchange
Which best explains why fiat money has value?
Fiat money has value primarily because it is recognized and accepted as a medium of exchange by the government and the public. Its worth is not derived from intrinsic value or physical commodities but is based on trust and confidence in the issuing authority. Additionally, the stability of the economy and the regulation of the money supply by central banks contribute to the perceived value of fiat currency. Thus, its value is sustained by the collective belief in its utility for transactions.
What accurately explains why fiat money has no value in itself?
Fiat money has only a single use as a medium of exchange.
What is the definition of Fiat money?
"Fiat money, is money that is not backed by something with vaule. US money is backed by commodites like silver and gold. Fiat money is money declared by a government to be legal, eventhough it has no value."
What is the difference between fiat money and token money?
Token money is a type of money whose intrinsic worth is less than its nominal value eg its value as money is less than its value as metal while fiat money is a type of money which intrinsic value is more than its nominal value.
What most accurately explains why fiat money has value in itself?
Fiat money has only a single use as a medium of exchange.
What most accurately explains why fiat money has no value in itself?
Fiat money has only a single use as a medium of exchange.
