Fiat currency

Fiat currency is money that is used to buy things and pay for services. It is the most common way of buying and selling goods and services around the world. Fiat currency is not backed by any physical goods, like gold or silver, but instead it is backed by the government that created it. For example, money made by the U.S. government is called the U.S. dollar, and money made by the British government is called British pound. It is very important to make sure that fiat currency has a stable value. Governments do this by controlling how much money can be printed and by managing the economy so that people will have confidence in the currency.