What is meant by the term fiat money? Define legal tender. will give brainliest

Question

Jonah

Social Studies

9 February, 02:39

What is meant by the term fiat money? Define legal tender. will give brainliest

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Answers (2)

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Amos · Answer 1

coins or banknotes that must be accepted if offered in payment of a debt.

Explanation:

Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered in payment of a debt extinguishes the debt.

Elliott Stafford · Answer 2

Fiat money is one that is declared legal tender. This includes any form of currency in circulation such as paper money or coins. Fiat money is backed by a country's government instead of a physical commodity.

The value of fiat money is not determined by the material with which it is made. That means the metals used to mint coins and the paper used for bills are not valuable themselves. The value of the money, however, is determined by the government. It retains its value through government stability and that of the nation's economy. Fiat money is one that is declared legal tender. This includes any form of currency in circulation such as paper money or coins. Fiat money is backed by a country's government instead of a physical commodity.

The value of fiat money is not determined by the material with which it is made. That means the metals used to mint coins and the paper used for bills are not valuable themselves. The value of the money, however, is determined by the government. It retains its value through government stability and that of the nation's economy.