fiat money

fiat money definition - business

fiat money

Money used as a medium of exchange but with no inherent value. Paper money is an example of fiat money used as a medium of exchange because of the willingness of the public to accept it in exchange for goods and services.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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