BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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full bodied money
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fait money
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fiduciary money
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None of these
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Detailed explanation-1: -The correct answer is Fiduciary Money. Fiduciary money is money that is accepted as a medium of exchange due to the trust that exists between the payer and the payee. Cheques are fiduciary money as these are accepted as a means of payment on the basis of trust but not on the basis of any order of the government.
Detailed explanation-2: -Fiduciary cash, currency or money, alludes to banknotes and coins available for use in the economy. This is the liquidity accessible to financial actors to do exchanges. It is a method for payment. Cash is a substantial or tangible property, not at all like scriptural cash which is insignificant.
Detailed explanation-3: -Fiat money refers to money whose value has been decreed by the government.
Detailed explanation-4: -1. Modern currency is accepted as a medium of exchange because it is authorized by the central government of a country. 2. In India, RBI issues the currency notes and it is illegal for any other organization or individual to issue the currency.