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
LEARN MORE:
KEYWORDS:
- fiat money
- gold or silver
- currency
- government
- debt
- physical commodity
- legal tender
It could either be a or b i am not for sure
i think it might be B
Embargo Act of 1807
The Embargo Act of 1807 was a general trade embargo on all foreign nations that was enacted by the United States Congress. During the Napoleonic Wars, rival nations Britain and France targeted neutral American shipping as a means to disrupt the trade of the other nation. At Jefferson's request, the two houses of Congress considered and passed the Embargo Act quickly in December 1807. All U.S. ports were closed to export shipping in either U.S. or foreign vessels, and restrictions were placed on imports from Great Britain. American president Thomas Jefferson (Democratic-Republican Party) led Congress to pass the Embargo Act of 1807. Effects on American shipping and markets: Agricultural prices and earnings fell. Shipping-related industries were devastated. What was unusual about the Embargo Act of 1807? It stopped all American vessels from sailing to foreign ports— amazing use of federal power, especially by a president who wanted to avoid that and foreign entanglements. The diplomatic neutrality of the United States was tested during the Napoleonic Wars (1803-1815). The warring nations of Britain and France both imposed trade restrictions in order to weaken each other's economies. These restrictions also disrupted American trade and threatened American neutrality. In the last sixteen days of President Thomas Jefferson's presidency, Congress replaced the Embargo Act of 1807 with the almost unenforceable Non-Intercourse Act of March 1809. This Act lifted all embargoes on American shipping except for those bound for British or French ports.
Answer:
much more crops are produced
