Talk:Legal tender
I'd like to give an example so that it's easy for people to visualise.
For example, a US dollar note costs less than a US dollar to PRODUCE, therefore the face value (actual cost) is less than US$1. But it can buy something off a shelf for US$1 because the government dictates that this US$1 paper note has a value of US$1.
The US$1 note is a fiat money.
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