What is a FIAT paper money system?

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What is a FIAT paper money system?

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2007-01-08 00:48:02 · 3 answers · asked by SouthOckendon 5 in Business & Finance ➔ Personal Finance

3 answers

an italian one that rusts quickly and has huge depeciation

2007-01-08 00:51:04 · answer #1 · answered by sid 2 · 2⤊ 2⤋

In economics, fiat currency or fiat money is money that enjoys legal tender status derived from a declaratory fiat or an authoritative order of the government.

2007-01-08 00:53:05 · answer #2 · answered by ghostfreak 2 · 2⤊ 1⤋

It means the paper money has no intrinsic value on its own; it has value because the government says it does. Hence the term "fiat", or government order.

2007-01-08 00:49:42 · answer #3 · answered by Anonymous · 1⤊ 0⤋