What is the difference between fiat money and commodity money

Posted on 18.06.2018 by Admin
We also are generally required to pay taxes in national currency, offer and accept legal renumeration in the form of national currency etc. Fiat money is a currency which is declared by the government or by the law as a legal tender to use it as a medium to the economic transactions. The value of fiat money is not determined by the material with which it is made.
What is the difference between fiat money and commodity money
The value of the money, however, is determined by the government. What is the difference between fiat money and legal tender. Com, including additional color options for many models. It has value because we as human beings trust it to have value.
Fiat money is not supported by precious metals like gold, silver. Fiat Money vs Commodity Money The monetary system has always been central to the economy of any country. Free Calculus Tutorials and Problems. What are the sources of supply and demand of loanable fund. Fiat money is legal money as defined by the state. Why does Fiat money differ from commodity money.