MCQ on Fiat Money – A Currency issued by the Government | Economics

Fiat money is a type of government-issued currency that is not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Fiat currency is typically designated by the issuing government to be legal tender, and is authorized by government regulation.

Let’s start the Quiz/MCQ

01) The money is called the __ which is a type of the currency issued by the government.

A) Commodity Money
B) Fiat money
C) Bank Money
D) Fiduciary Money

Correct answer is option “B”

02) The Fiat Money is not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Is it true or false?

A) True
B) False

Correct answer is option “A”

03) A currency is typically designated by the government to be legal tender, and is authorized by government regulation is called __.

A) Bank Money
B) Commodity Money
C) Commercial Money
D) Fiat money

Correct answer is option “D”

04) What is the major currency in the world, Since the end of the Bretton Woods system in 1975?

A) Legal Tender
B) Paper Money
C) Fiat Money
D) Representative Money

Correct answer is option “C”

MCQs on General Awareness | World Currency | Strongest Currency | Weakest Currency | GK Question

05) Which of the following mode of money generally does not have intrinsic value and also does not have use value?

A) Legal Tender
B) Fiat Money
C) Paper Money
D) Representative Money

Correct answer is option “B”

06) The value of the Fiat Money is only because the individuals use it as a unit of money or a medium of exchange. Whether this statement is true or false?

A) False
B) True

Correct answer is option “B”

07) Which of the following is the money that individuals and merchants have confidence in because they know that this money will be accepted everywhere as a means of paying their liabilities?

A) Commodity Money
B) Credit Money
C) Fiat Money
D) Metallic Money

Correct answer is option “C”

08) Wuich of the following money that is not backed by a any commodity.

A) Commercial Bank Money
B) Legal Tender
C) Paper Money
D) Fiat Money

Correct answer is option ” D”

09) Which of the following currencies is declared as a legal tender by a person, institution or government? This means that the money can be accepted for payment for buying and selling goods and services anywhere in a specific region or country.

A) Fiat Money
B) Commercial Bank Money
C) Legal Tender
D) Paper Money

Correct answer is option ” A”

Try more MCQ’s…….

Classification of money

Commodity Money

Credit Money

Fiduciary Money

Metallic Money

Commercial Bank Money

Legal Tender

Paper Money

Representative Money

Full Bodied money

अन्य विषयों पर अधिक MCQ करने के लिए यहां क्लिक करें

Wish you all the best for a brightest future.

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