Question

disadvantage of representative money,fiat money and near money?​

Answer 1

Answer:

Because it is not backed by anything other than the faith and trust of the government, fiat money is prone to depreciation in value due to inflation. Because it is not tied directly to a physical commodity, fiat money can become undervalued if there is too much of it.

Answer 2

Explanation:

With a representative money system, the government cannot just print as much money as they want. The amount of money they can print is limited by the amount of the commodity they have.