Question : Money which is accepted as a medium of exchange because of the trust between the payer and the payee is called:
Option 1: Full-bodied money
Option 2: Credit money
Option 3: Fiat money
Option 4: Fiduciary money
Answer (1)
13th Jan, 2024
Correct Answer: Fiduciary money
Solution : The correct answer is (d). Fiduciary money
Fiduciary money refers to money that is accepted as a medium of exchange based on the trust or confidence between the payer (person making the payment) and the payee (person receiving the payment). It is a form of money that relies on the trustworthiness and credibility of the issuing authority or institution.
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