Question 30
MediumOriginal questionAssertion (A): Paper currency is accepted though the paper itself has little value.
Reason (R): Currency is fiat money, made legal tender by the government's order.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
People accept notes because the law makes them acceptable and everyone trusts that others will accept them.
R explains A.
- Concept
- Why paper money works
- Typical timeTypical
- 70 s
- Your timeYours
- —
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