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In our daily lives, we often engage in transactions using cash, yet the nuances behind what we consider money often go unnoticed. At the center of this monetary web is legal tender, a type of money that has gained importance in the modern economic landscape. Understanding fiat money definition is crucial for understanding how our economy functions and how value is assigned to the goods we acquire and exchange every day.


Fiat currency, by definition, refers to currency that is issued by a government and does not have intrinsic value or support by a physical asset, such as precious metals or silver. Instead, its price is established by the confidence that people place in the government. This form of currency has become the cornerstone of the global e