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Fiat money has only a single use as a medium of exchange.
Fiat money has only a single use as a medium of exchange.
Fiat money has only a single use as a medium of exchange.
Fiat money has value bc the gov. declares that it has value.
Fiat money has value because the government declares that it has value.
Fiat money has only a single use as a medium of exchange.
Fiat money has only a single use as a medium of exchange.
Fiat money has only a single use as a medium of exchange.
Fiat money has value bc the gov. declares that it has value.
Fiat money has value because the government declares that it has value.
fiat money has only a single use as a medium of exchange
Commodity money has value in itself while fiat money has value only because it is given value
Fiat 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.
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.
Commodity money can be used for some other purpose while Fiat money can only be used as a medium of exchange.Commodity (sometimes referred to as "Hard") money is currency which is fully backed by a specie (usually a precious metal i.e. Gold, Silver, or Platinum). Fiat money is backed only by a promise of the issuing government to honor the value of the bill or coin.
"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."