Wednesday, May 01, 2013

What is Fiat Money?

Free Coin Price Guides
Currency issued by a governing body as money that does not have any intrinsic value, and is not backed by any precious metal reserves such as gold or silver, is referred to as “Fiat Currency.”

Since it is not backed by any physical reserves, there is no limit as to how much a government can print. The value of the currency relies solely on the public's faith that it has value.

Print too much fiat money and inflation will result as the public places less value on the currency.

0 Comments:

Post a Comment

<< Home