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The equation below is the solution to a physics problem: . The most likely physical situation it describes is
Commodity Money
Money that has intrinsic value, such as gold or silver, which can serve as a medium of exchange, a unit of account, and a store of value.
Fractional Reserve Banking
A financial system where just a small portion of the deposits at a bank is supported by real cash present and accessible for withdrawal.
Fiat Money
Fiat money is currency that a government has declared to be legal tender, despite it not being backed by a physical commodity.
Precious Metal
Rare, naturally occurring metallic elements of high economic value, typically used for currency, jewelry, and other arts because of their rarity, durability, and aesthetic qualities.
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