Which type of money is characterized by having no intrinsic value?

Fiat money is characterized by having no intrinsic value, meaning it does not have any physical worth in itself and is not backed by a commodity like gold or silver. Instead, its value comes from the trust and confidence that people have in the issuing government or authority to maintain its purchasing power. This type of currency is effectively a system of social agreement where the government mandates that it must be accepted as a form of payment for debts and goods.

In contrast, commodity money possesses intrinsic value because it is made of materials that have value outside of their use as currency. Examples include gold coins or silver bars. Representative money, while it may not have intrinsic value as a medium of exchange, is backed by a promise to exchange it for a commodity. Lastly, hard currency refers to money that is widely accepted around the world, usually involving stable currencies with a strong backing, often using fiat money, but not necessarily representing a lack of intrinsic value.