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 because the government declares that it has value.
Fiat money has value bc the gov. 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 because the government declares that it has value.
Fiat money has value bc the gov. declares that it has value.
Fiat money. This is money that has no tangible value. An alternative is gold, which in itself has tangible 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 has only a single use as a medium of exchange
Fiat money is currency that has value primarily because a government maintains it and people have faith in its value, rather than being backed by a physical commodity. In contrast, commodity money is based on the value of a physical good, such as gold or silver, which has intrinsic value. While fiat money relies on trust and legal status, commodity money derives its value from the material it is made of. This fundamental difference influences how each type of money is perceived and utilized in the economy.
Fiat money differs from commodity money primarily because it has no intrinsic value; it is not backed by a physical commodity like gold or silver. Instead, its value is derived from the trust and confidence that people have in the issuing government or authority. This trust allows fiat money to function as a medium of exchange, store of value, and unit of account, even though it has no inherent worth. In contrast, commodity money has value based on the material it is made from.
Fiat money