Fiat money, in a broad sense, all kinds of money that are made legal tender by a government decree or fiat. Money - Economics Ch 10 DRAFT. Fiat money only has value as a medium of exchange. barter system; commodity money; commodity-backed money; fiat money. Answer to Currently, U.S. currency is a. fiat money with intrinsic value. Commodity money has intrinsic value because it has other uses besides being a medium of exchange. 0. Because money creates a standard -, it is possible to compare the prices of two goods, which allows people to communicate the – of the goods in a way that is easily understood. Save. Commodity Money and Fiat Money. 0. What is Fiat Money? by jfox_78757. Social Studies. Fiat money is a currency that lacks intrinsic value and is established as a legal tender by government regulation. Treatment in economics. In monetary economics, fiat money is an intrinsically valueless object or record that is accepted widely as a means of payment. Fiat money is also very flexible and can be used in the payment of a variety of amounts, large and small. Fiat money an also be used as a productive input. Played 9 times. M2 money supply: a definition of the money supply that includes everything in M1, but also adds savings deposits, money market funds, and certificates of deposit money … Traditionally, currencies Forex Trading - How to Trade the Forex Market Forex trading allows users to capitalize on appreciation and depreciation of different currencies. Edit. Money - Economics Ch 10 DRAFT. Fiat money has value because it is a precious metal such as gold. The Fed reports several different measures of money, including M1 and M2. 63% average accuracy. Arrange the systems of economic exchange according to the order in which they historically appeared. The term is, however, usually reserved for legal-tender paper money or coins that have face values far exceeding their commodity values and are not redeemable in gold or silver . a year ago. 9 times. 12th grade. b. fiat money with no intrinsic value. Money may or may not have intrinsic value. Both fiat money and commodity money can be used to make payments, but of the two, fiat money is much more popular and widely used in … a year ago. Fiat money serves only as a medium of exchange, because its use as such is authorized by the government; it has no intrinsic value. jfox_78757. Another specific advantage of fiat money is that it is more practical than commodity money. Fiat money is the government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. Edit. Fiat Money vs Commodity Money The monetary system has always been central to the economy of any country. 12th grade . 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