Frequently asked questions

Simply put, it is a paper currency, which is a legal tender, and its value is determined by the issuing state and not by a physical commodity. The strength of the government that sets the value of the fiat currency is a critical factor for this type of money. Most countries use the fiat currency system to buy goods and services, invest and save. Fiat currency has replaced the gold standard and other commodity-based systems in determining the value of the legal tender.

Credit - the money you receive, which you need to return later, feeds the economy. More credit means more expenses. More spending means more income, and more income means more loans from lenders. The loan also creates debt: the borrowed money must be repaid, so the costs should decrease later. Governments raise and lower interest rates to keep the economy under control.