ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A fiat money is a type of currency that is declared legal tender by a government but has no intrinsic or fixed value and is not backed by any tangible asset, such as gold or silver.

Detailed explanation-2: -Fiat money is physical money-both paper money and coins-while representative money is a form of currency that represents the intent to pay, such as a check.

Detailed explanation-3: -Fiat money is a currency that lacks intrinsic value and is established as a legal tender by government regulation. Traditionally, currencies were backed by physical commodities such as silver and gold, but fiat money is based on the creditworthiness of the issuing government.

Detailed explanation-4: -The acronym F.I.A.T. stands for Fabbrica Italiana Automobili Torino, but the name FIAT means so much more. Founded in 1899, over the years the Turin-based company has become a symbol of Italy’s technological and creative enterprise, which have changed the country and the history of global mobility forever.

Detailed explanation-5: -Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.