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What is the difference between soft money and hard money?

Updated: 2/12/2022
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7y ago

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There are distinct uses for the terms in various contexts.

Specie

In fiscal terms, hard money is money with intrinsic value, such as gold and silver coins, or alternatively a currency that has backing, as on the "gold standard." Other forms of money are "soft money" or more specifically "Fiat money" which has a declared value based on the credit of the issuer.

Loans

A "hard money loan" is one that is secured by the value of real estate.

Political Contributions

"Hard Money" consists of political donations that are contributed to support a specific candidate or issue, whereas "soft money" is given to a party or political organization for their unregulated use.

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soft money is given in unlimited amounts (gradpoint)

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Destiney Jenkins

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2y ago
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Ephraim Armstrong

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2y ago

hard money is given directly to political campaigns, while soft money is given to political parties for "voter education."

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Wiki User

8y ago

There are distinct uses for the terms in various contexts.

Specie

In fiscal terms, hard money is money with intrinsic value, such as gold and silver coins, or alternatively a currency that has backing, as on the "gold standard." Other forms of money are "soft money" or more specifically "Fiat money" which has a declared value based on the credit of the issuer.

Loans

A "hard money loan" is one that is secured by the value of real estate.

Political Contributions

"Hard Money" consists of political donations that are contributed to support a specific candidate or issue, whereas "soft money" is given to a party or political organization for their unregulated use.

(see related link below)

soft money is given in unlimited amounts (gradpoint)

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