Suppose you have a $1 silver eagle United States coin. This coin is made up of 1 ounce of 99.99% pure silver. (The other .01% is zinc to strengthen the coin)
3. Is this fiat currency?
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No, this is not fiat currency. Fiat currency is a type of currency that is not backed by a physical commodity like gold or silver, but rather by the government's declaration and acceptance as a medium of exchange. In this case, the $1 silver eagle coin has intrinsic value because it contains 1 ounce of pure silver.
1 answer