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
It is an imaginary transformer which has no core loss, no ohmic resistance and no leakage flux. The ideal transformer has the following important characteristic. The resistance of their primary and secondary winding becomes zero. The core of the ideal transformer has infinite permeability.
It is a truth universally acknowledged that a single man in possession of a good fortune must be in want of a wife.
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Explanation:
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The story of Pride and Prejudice revolves around the life style of English people during the period of Georgian era. The story mainly focuses on the love and life and also the humorous part life how it will help the living environment so conducive.
The author of the story, June Austen as set the main theme of the story in the first two paragraphs of the story that is about the marriage. The author clearly states that it is a humorous paragraph filled with hatred sarcasm. Jane Austen says that a single man who has amazed wealth must be in want of a wife which is accepted universally.
b. unite North and South Korea under a communist government
Answer: Catalogs
Explanation:
In 1872, Aaron Montgomery Ward took advantage of the growing shipping business in America to establish the Montgomery Ward Company.
The company's modus operandi was to showcase goods in a catalog and distribute it to people who would then order the products they liked. The company would then deliver it by rail.
Starting with a single-sheet catalog that offered only 163 items, the company grew to serve 3 million customers by the year 1904 and are still in existence today.
