Banks have been around for hundreds of years. The first banks started out as places that held gold in deposit and gave you a receipt that you could use to get your gold back. From there, some banker got the wild idea to make the note itself transferable to other people. Paper money was born.
The word “fiat” comes from the Latin and means “let it be done.” Since fiat money has no value outside of this government decree that it does, it is said to have no intrinsic value.
Inflation is defined as the increase in the money supply in an economy. It derives from the Latin word inflate, meaning, “to blow up.” When the money supply grows faster than the amount of goods and services in an economy, prices usually increase.
Money has been an expression of value divisible in nature, durable, transportable, and scarce. Any object that carries these attributes can be called as money when used as a medium of exchange.