Your list · 0 हिं

Money and Its Functions · Question 26 of 57

Question 26

EasyOriginal question

Fiat money is money that

is made of gold or silverCorrect answerYour answerhas value because the government declares it moneyCorrect answerYour answeris issued by commercial banksCorrect answerYour answeris used only for foreign tradeCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A ₹500 note's paper is worth very little; its value comes from the government's order.

Concept: Fiat money
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsLegal tender and fiat money

Practise this chapter →

Ten questions from Money and Its Functions, at your own pace.

Practise this chapter →

Ten questions from Money and Its Functions, at your own pace.

Practise this chapter All 57 questions in Money and Its Functions Revise the notes for Money and Its Functions