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प्रश्न
Convertible paper money and Inconvertible paper money.
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उत्तर
| Points | Convertible Paper Money | Inconvertible Paper Money |
| 1. Meaning | It is that money which can be converted into standard money on demand. | It is also known a fiat money, this money is sanctioned on the command of Government. |
| 2. Backed by Reserves | This money is normally backed by gold or silver reserves. Therefore, it can be converted into gold or silver. | This money is not backed by gold or silver reserves. Therefore, it cannot be converted into gold or silver. |
| 3. Current Usage | Nowadays, convertible paper money is not in use. | Nowadays, inconvertible paper money is in use in almost all countries. |
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