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2 dagar sedan · Fiat money, in a broad sense, all kinds of money that are made legal tender by a government decree or fiat. The term is, however, usually reserved for legal-tender paper money or coins that have face values far exceeding their commodity values and are not redeemable in gold or silver.

I explain what it is and how it came to be. Learn the history behind how the US lost its gold and silver standard. Who was responsible fo B. Paper money that is not a medium of exchange. C. Legal tender that has no intrinsic value. D. Checking accounts and debit cards. E. Credit cards.

Fiat money quizlet

Money has taken many forms through the ages: shells, wheels, beads and even cows. All forms, though, have always had three things in common. Find out what in this eight-minute episode of our Economic Lowdown Podcast Series. You will also learn how commodity money differs from representative money and how both differ from today's fiat money. Fiat money is convenient because the alternative mechanism that uses the direct mapping can simply ignore the fiat money — can treat it as worthless. This could not be done with commodity money. And, with commodity money, it is not easy to distinguish between monetary trade and non-monetary trade.

Start studying Money. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Fiat money is currency that a government has declared to be legal tender , but it is not backed by a physical commodity.

a. Fiat money is tied to a fixed quantity of gold and therefore protects against inflation. b.Fiat money eliminates the need for monetary policy and the Federal Reserve?s role in managing the money supply. c.All fiat money is a type of soft currency that trades only within the issuing country. d.The U.S. dollar is fiat money.

The Fed reports several different measures of money, including M1 and M2. Edit. jfox_78757.

2012-08-10

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63% average accuracy. Edit.
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neither commodity money nor fiat money. Quiz - or based on any Quizlet Money AS a and Monetary Policy Unit legal tender(u;n).

An extensive essay on the gold standard on The Encyclopedia of Economics and Liberty defines it as: A county under the gold standard would Raise your hand if you can't afford a divorce. Money may not truly buy happiness, but it can buy freedom, and that translates into happiness eventually.
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Fiat Money. Fiat money gets its value from a government order (i.e., fiat). That means, the government declares fiat money to be legal tender, which requires all people and firms within the country to accept it as a means of payment. If they fail to do so, they may be fined or even put in prison.

d.The U.S. dollar is fiat money. Study Money & Banking Chapter 7 Flashcards at ProProfs - Key terms and concepts of Chapter 7 2019-07-19 2012-08-10 Quizlet.com Disadvantage: fiat money is only acceptable as long as households and firms have confidence that if they accept paper dollars in exchange for goods and services, the dollars won't lose much value during the time they hold them.-If people stop "believing" in the fiat money, it … Money may or may not have intrinsic value. Commodity money has intrinsic value because it has other uses besides being a medium of exchange.

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In conclusion then, ‘fiat’ money can accomplish the aims of the Gold Standard (stabilising the money supply) without its drawbacks, providing it is made accountable to the public.