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What is meant by Fiat Money?

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تم إضافة السؤال من قبل padmakumar pathiyil , Marketing Consultant , Management Consultancy
تاريخ النشر: 2015/01/03
Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

Money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins. The value of fiat money depends on the strength of the issuing country's economy. Inflation results when a government issues too much fiat money.

Azhar Hussain
من قبل Azhar Hussain , Manager – Marketing , MOTOFIX

Fiat money is money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins.

 

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