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प्रश्न
What is fiat money?
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उत्तर १
- Fiat money is defined as money that has no intrinsic value.
- It is not backed by any commodity like gold.
उत्तर २
Inconvertible paper money acts as money because people have confidence in it as it is issued on the order (fiat) of the government. It is called fiat money because the government has declared it a legal tender. It is circulated in the country on the order of the government.
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संबंधित प्रश्न
Currency and ______ are two modern forms of money.
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?
Which one of the following is not a modern form of money?
Indian rupee is legal tender.
______ 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?
Distinguish between fiat money and bank money.
