Quick Definition

Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Instead, its value comes primarily from the public's trust in the issuer.

Examples

• 1U.S. dollars used for buying groceries or paying bills.
• 2Euro notes used for transactions within the Eurozone.
• 3Japanese yen used for purchasing goods and services in Japan.
• 4Indian rupees used to buy assets or services in India.

Tags