Glossary
Opinions
Articles
Beginners Course
Lecture Modules - PDS
Exams
New Highs
Winning Shares
Lecture Modules - Resellers
About - Background Approach
Privacy Policy
Daily Quiz
Software Download Steps
Logout
Dashboard
Log out
All currencies were originally commodity currencies - which means that they had the value inherent in the commodity which they were made of. Thus, a gold coin was worth the value of its gold content and so on. A fiat currency has value only because of a government fiat or decree. It is usually made of paper which, without that government fiat, would be worth nothing. It is worth its face value because the government says it is and because everyone accepts that.