Extrinsic value - Citizendia

Extrinsic value is value which arises because of an agreement: Although the intrinsic value of a €100 note is not much more than the value of any similar piece of paper with a pretty picture on it, it has a practical value (an extrinsic value) of €100. The economic value of a good or service has puzzled economists since the beginning of the discipline A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is The term intrinsic denotes a characteristic or property of some thing or action which is essential and specific to that thing or action and which is wholly independent If its issuing authority were to fail to honor the note's value, it would soon become nearly worthless.

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