Question : Currency notes and coins are called ______.
Option 1: near money
Option 2: commodity money
Option 3: fiduciary money
Option 4: fiat money
Correct Answer: fiat money
Solution : The correct option is fiat money .
Fiat money can exist in the form of currency notes and coins, and it is declared legal tender by the government. Fiat money refers to a type of currency that has no intrinsic value and is not backed by a physical commodity like gold or silver. Instead, its value is derived from the trust and confidence that people have in the government or authority that issues it.
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