The value of Fiat currency is a nation's credit, and that is because it is used to clear off debt by the citizens of a nation.
Fiat currency is, thus, a government issued-currency that is not supported by physical commodity, such physical commodity can be gold or silver.
The value of fiat money then is gotten from the relationship between supply and demand and the stability of government issuing it instead of the worth of a commodity that backs it.
For example, the United states dollar, euro and many world currencies are all fiat currency.
Government, historically, mint coins from valuable physical commodity and print paper money that could be redeemed for a particular amount of physical commodity.
In the case of inflation or hyperinflation, fiat money tends to loose value and this is because it is not connected to physical reserves such as gold or silver. if people lose faith in the country's currency, it tends to lose its value.
This is entirely different from currency that is backed by gold mainly because the demands for products made of gold such as jewelries, computers, electronic devices and aerospace vehicles are very high.
Fiat currency is issued by most government as legal tender for the purpose of debt repayment
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KEYWORDS:
- fiat money
- gold or silver
- currency
- government
- debt
- physical commodity
- legal tender
Answer:
looking for personal freedom and jobs
Explanation:
Since the industry started to develop in the United States, the interest among the people to migrate to it increased even more. The reasons for this were that the United States had industry that was growing very quickly, so labor force was demanded, thus the job opportunities were plenty. Another reason for the migration was personal freedom. The United States were seen as the country in which the people can express themselves freely, and that if they work hard enough and are capable enough, they can easily progress and became part of the higher class, which of course was very attractive for the ordinary people.
The framers of the constitution understood that free speech/expression were imperative rights for citizens to have. This is based on their experience as colonists under British control. When ruled by the British, American colonists were forced to pay taxes that they never voted on or approved.
This sparked outrage among some American citizens, causing them to express their concerns in a public manner. This ability to share their views was the cornerstone of America's ability to declare independence from Great Britain. The framers wanted to make sure that once the colonists had their own country that they would have this right to freedom of expression.
