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Fiat money is physical money—paper or coins—while representative money is a check or other form of currency that can be exchanged for physical money in a stated amount.
The meaning of REPRESENTATIVE MONEY is paper money backed by an equal amount of gold or silver coin or bullion held by a government.
Representative money or receipt money is any medium of exchange, physical or digital, that represents something of value, but has little or no value of its own (intrinsic value). Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.
The most accurate representative money definition is that it’s a form of currency that represents something of value. It often takes the form of a token or certificate that can be exchanged for an actual physical commodity, such as gold.
What is representative money and how does it differ from the fiat money we use every day? Read our comprehensive definition to learn everything you need to know.
Representative money, also known as fiduciary money or fiat money, is a type of money that is not backed by any physical commodity, such as gold or silver. Instead, its value is derived from...
Representative money is an item such as a token or piece of paper that has no intrinsic value, but can be exchanged on demand for a commodity that does have intrinsic value.