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प्रश्न
Distinguish between fiat money and bank money.
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उत्तर
| Sr. No. | Aspect | Fiat Money | Bank Money |
| 1. | Meaning | Fiat money is currency that a government declares as legal tender. It has no real value but is accepted in transactions due to government regulations. | Bank money is defined as money maintained in bank accounts, primarily in the form of demand deposits. It can be used for a variety of transactions, including checks and electronic transfers. |
| 2. | Form | Physical form such as paper currency and coins. | Electronic or paper-based forms, such as account balances, cheques, and digital transactions. |
| 3. | Issuance | Issued by the government or central bank. | Created by commercial banks when they extend loans or accept deposits. |
| 4. | Example | Currency notes and coins (e.g., Indian Rupee, US Dollar). | Demand deposits, cheques, and electronic balances in bank accounts. |
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संबंधित प्रश्न
Who regulates money supply in India?
Money whose value as a commodity is equal to its face value is called:
Which of the following agency is responsible for issuing ₹ 1 currency note in India?
Which of the following institutions is authorised to issue currency in India?
______ are termed as Legal Tender Money.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank money is legal tender money.
Reason (R): Cheques drawn on demand deposits can be refused by anyone as a mode of payment. Hence, demand deposits (i.e. bank money) are not legal tenders they are optional.
Read the-following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Currency and bank money are the two modern forms of money.
Reason (R): Currency is high powered money.
Match the following:
| Column I | Column II | ||
| A. | Currency | (i) | Something which is commonly used as medium of exchange |
| B. | Bank money | (ii) | Currency and demand deposits |
| C. | Money | (iii) | Bank demand deposits |
| D. | Modern form of money | (iv) | Paper notes + coins |
Why is money referred to as legal tender?
What is fiat money?
