What is fiat money? Why is fiat money important in the United States today?

What will be an ideal response?


Fiat (from the Latin for “Let it be done”) money is money that is decreed to be acceptable as payment, regardless of whether or not there is backing by gold, silver, or other precious metals. Money in circulation in the United States (and most other modern economies) today is almost entirely fiat money. Fiat money is valuable only because people believe it is exchangeable for goods and services. It has no intrinsic value.

Economics

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Economics