Tuesday, January 11, 2011

FIAT MONEY

Money on wheels..!!! the first thought came to my mind after hearing the term..:-).

Fiat Money = Money

Confused ? have a look on the literal definition

" Money which has no Intrinsic value and cannot be redeemed for specie or any commodity but is made a legal tender through government decree."

So, at present, all currency notes and coins are Fiat Money, isn't it.

P.S. Specie: Money with intrinsic value e.g. Gold and Silver coins.

1 comments:

Anonymous said...

Good info, thanks.

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