Legal Definitions - flat money

Flat money is a type of currency that is not backed by gold or silver. It is also known as fiat money. This means that the value of the money is determined by the government that issues it, rather than by the value of a physical commodity.

Examples of flat money include paper bills and coins that are used as legal tender in a country. The US dollar, the euro, and the Japanese yen are all examples of flat money.

Flat money is different from real money, which has intrinsic value, such as gold or silver coins. It is also different from e-money, which is a digital form of currency that is stored on a computer or a chip.

Flat money is important because it allows for easier exchange of goods and services within a country. It is widely accepted and recognized as a medium of exchange, making it easier for people to conduct transactions.