<P> Fiat money is a currency without intrinsic value that has been established as money , often by government regulation . Fiat money does not have use value , and has value only because a government maintains its value , or because parties engaging in exchange agree on its value . It was introduced as an alternative to commodity money and representative money . Commodity money is created from a good , often a precious metal such as gold or silver , which has uses other than as a medium of exchange ( such a good is called a commodity ) . Representative money is similar to fiat money , but it represents a claim on a commodity ( which can be redeemed to a greater or lesser extent ) . </P>
<P> Fiat money is a currency without intrinsic value that has been established as money , often by government regulation . Fiat money does not have use value , and has value only because a government maintains its value , or because parties engaging in exchange agree on its value . It was introduced as an alternative to commodity money and representative money . Commodity money is created from a good , often a precious metal such as gold or silver , which has uses other than as a medium of exchange ( such a good is called a commodity ) . Representative money is similar to fiat money , but it represents a claim on a commodity ( which can be redeemed to a greater or lesser extent ) . </P>
what type of money has value based on intrinsic worth
what type of money has value based on intrinsic worth
Commodity money
Commodity money