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
None of the options is correct.
INTERMITTENT ACTIVITY means that you perform said activity at irregular intervals, in a sporadic way. On the contrary, the options mentioned require the subject to participate actively. For example, in order to develop a skill it is important to practice a lot. In the same way, if you focus on what you are hearing, you are paying attention which is the opposite to what an intermittent activity is.
As a new center for industrial development.
Hope this helps,
Davinia.
Samuel Adams was a Boston-born political leader who played a vital role in moving colonial America to its decisive break with Britain during the American Revolution.
