Closed LiQuiD-404 closed 1 year ago
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Is it correct that fiat money has value because the government says it has? The Zimbabwean Dollar and Venezuelan bolívar are 2 examples where this is not true.
Is it correct that fiat money has value because the government says it has? The Zimbabwean Dollar and Venezuelan bolívar are 2 examples where this is not true.
What I was trying to mean from the above sentence was that fiat money lacks intrinsic value and the value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it.
I will remove the whole thing and make some changes.
Merging this, thanks for the contribution @LiQuiD-404
Closes #975
I have worked on the above-mentioned issue and have added the definition of "fiat" currency in the glossary. I have also linked a Wikipedia page where the user can learn more about fiat and fiat currencies if he wishes to.
Let me know if there is any more addition or improvement needed from my side.
Screenshot :