In this short video you will learn what money is and how it is created.

(Source: Youtube)

Fiat money from the Latin word fiat (“It was done! It be done! It will be!”) (also English fiat money) is an object with no intrinsic value that serves as a medium of exchange. The opposite of fiat money is commodity money, e.g. B. Tobacco, rice, gold or silver is used, which, in addition to the external exchange value, also has an internal value that is independent of government decrees, as long as it can be used to pay. All of today’s monetary systems do not fix the value of currency at an official rate with a commodity. Instead, value is secured via the government’s power to mandate the currency as legal tender. However, it does not necessarily acquire the properties of money through a legal definition as a means of payment in a currency constitution alone, but only through general acceptance by trading partners (payers, recipients), also with regard to the value and exchange rate of the currency.