Fiat Money Definition | InvestopediaFiat Money Definition Follow us:Investopedia on Facebook Legal ten...
Fiat Money Definition | InvestopediaFiat Money Definition Follow us:Investopedia on Facebook Legal ten...
Fiat money isn't a scarce or fixed resource like gold so central banks have much greater control over its supply. This gives them the power to manage economic variables such as credit supply, liquidity, interest rates, and money velocity. TheU.S. Federal Reservehas the dual mandate to keep...
Fiat moneydoes not have intrinsic value, while commodity money often does. Changes in public confidence in a government issuing fiat money may be enough to make the fiat currency worthless. However, commodity money is also susceptible to inflation or deflation when the availability of the underlying...
Fiat money is both physical money and legal tender and is backed by a nation's government. Representative money may be backed by a physical commodity such as precious metals, the cash in the issuer's account, or the credit extended through a credit card company. ...