fiat money
Definition
Money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins. The value of fiat money depends on the strength of the issuing country's economy. Inflation results when a government issues too much fiat money.
Use fiat money in a sentence
“ While modern currency is used on a daily basis to purchase a myriad of items, it is actually considered fiat money because it has no real value on its own; its value directly depends on the issuing country's economy. ”
“ It was fiat money and after I learned that I realized that the money had no intrinsic value and could not be redeemed. ”
“ My boss is a real gold bug, and frequently declares that we should not keep our investments in dollars because those are issued by the government with nothing real behind them and are fiat money. ”
