Fiat currency is a term that describes the money you use every day. The U.S. dollar is a fiat currency, as are most other modern currencies circulating around the world. Fiat currencies’ values are generally supported by the economic power of a government. This kind of money is different from an asset-backed currency, which derives…

Andy Rosen writes for NerdWallet. Email: arosen@nerdwallet.com. Twitter: @https://twitter.com/andyrosen.

The article What Is Fiat Currency? originally appeared on NerdWallet.

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