Perhaps the word that sticks out the most when it comes to the disadvantages of fiat money is trust. When confidence in a government or economy erodes, the fiat currency’s value can drop as the government struggles. When unemployment rises, government debt increases or governmental upheaval exists, the…
It must represent interest as an owner or creditor, carry an assigned monetary value, and be able to provide a profit opportunity for the purchaser. Marketable debt securities are held as short-term investments and are expected to be sold within one year. If a debt security is expected…