Fiat money

Fiat Money
Fiat money is currency that cannot be redeemed for a commodity with intrinsic economic value. Fiat money only has value by government fiat, or decree.

Fiat Money
Related Category: Money, Banking, and Investment
(f´t, f´t), inconvertible money that is made legal tender by the decree, or fiat, of the government but that is not covered by a specie reserve.

fiat money
currency that is made legal tender by government law or regulation. In the United States, Federal Reserve Notes are fiat money. Fiat money always has a legal value that exceeds its intrinsic value.
Referring Terms: ...

The modern fiat money system, with flexible exchange rates, guarantees the destruction of debt and money that occurred in the 1930s will not occur in the next few years, ...

It derives its purchasing power and value from the authority and reputation of the government that issues it. From the word fiat, a command or decree, derived from the Latin for 'let it be done.' Modern day notes and coins are fiat money.

FIAT MONEY - Money that has little or no intrinsic value as a commodity; it is costless to produce, usu...
FIBONACCI RATIO - The ratio between any two successive numbers in the Fibonacci sequence, known as phi ...

Fiat Money
Fiat money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years.

Fiat money Fiat money is money because the government says it is.
Fiduciary monetary system A system in which currency is issued by the government and its value is based uniquely on the public's faith that the currency represents command over ...

fiat money: is intrinsically useless; is used only as a medium of exchange.
Contexts: money; macro
fields: Most terms are in one of these categories. You can click on one to see a list of terms relevant to it.

Fiat money - Paper money or coinage that is neither backed by nor convertible into anything else but is decreed by the government to be accepted as legal tender and is generally accepted in exchange for goods and services and for the discharge ...

[edit] Fiat money
The alternative to a commodity money system is fiat money which is defined by a central bank and government law, or "fiat", which defines legal tender.

FIAT MONEY
A medium of exchange (money) with value in exchange, but little or no value in use. Modern paper currency, coins, and checkable deposits are fiat money.

Fiat Money
Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves.

Fiat money
A money whose usefulness results, not from any intrinsic value or guarantee that it can be converted into gold or another currency, but only from a government's order (fiat) that it must be accepted as a means of payment.

Fiat money Nonconvertible paper money. Field warehouse Warehouse rented by a warehouse company on another firm's premises.

fiat money Money which has no intrinsic value and cannot be redeemed for specie or any... Fibonacci The Fibonacci sequence, named for its discoverer Leonardo Fibonacci, forms the...

Fiat money Nonconvertible paper money. FICO See: Financing corporation Fictitious credit A margin account's credit balance.

In present day industrialized economies, money normally consists mostly of abstract claims on government or on heavily government-regulated banks ("fiat money") -- claims such as token coins and paper currency or central bank notes or even magnetic ...

Fiat money [r]: money whose value is determined solely by government order, or "fiat" (as distinct from commodity money that has value because of its scarcity or cost of production). [e]
Fiscal [r]: relating to taxation and government expenditure.

Some investors don't believe in fiat money and invest only in gold, silver, precious metals and commodities (oil for example). More risk inclined investors use leverage (see margin) when investing, and speculate in penny stocks.

Gold trading was a reality till the early 20th century, but with the introduction of fiat money in the form of paper currency, the gold trading concept was phased out.

Precious metals have been the most resilient currencies, with gold historically outlasting all forms of paper fiat money.

In a fiat money system the government has a legislated monopoly on the supply of base money. Hence it has complete control over the value of money.

To maintain high employment and minimize popular discontent, fascist governments also undertook massive public-works projects financed by steep taxes, borrowing, and fiat money creation.

The percentage of loans in a pool of mortgages outstanding at the origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages.
Fiat money
Nonconvertible paper money.
FICO ...

See also: Banks, Saving, Bills, Banking system, Financial assets