Fiat Money vs Commodity Money: What's the Difference?
Examples are gold, silver, cowrie shells, cigarettes and cocoa beans (OpenStax).
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1.What is commodity money?
Examples are gold, silver, cowrie shells, cigarettes and cocoa beans (OpenStax).
2.What is fiat money?
A government declares it legal tender; its value rests on rules and trust (OpenStax).
3.What is legal tender?
In the US, Federal Reserve notes are legal tender for all debts, taxes and dues (31 U.S.C. 5103).
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