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Question : Currency notes and coins are called ______.

Option 1: near money

Option 2: commodity money

Option 3: fiduciary money

Option 4: fiat money


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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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