ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Standard money consisting of paper currency notes and coins is called fiat money. No one can refuse to accept this money. Q. The total amount of currency notes and coins in circulation is called .

Detailed explanation-2: -Currency is the physical money in an economy, comprising the coins and paper notes in circulation. Currency makes up just a small amount of the overall money supply, much of which exists as credit money or electronic entries in financial ledgers.

Detailed explanation-3: -Fiat money is a form of currency that is declared legal tender. This includes money in circulation such as paper money or coins. Fiat money is backed by a country’s government instead of a physical commodity or financial instrument.

Detailed explanation-4: -The term currency refers to the tangible form of money that is paper bills and coins. It’s used as a medium of exchange that’s accepted at face value for products and services as well as for savings and the payment of debt.

Detailed explanation-5: -In India, Paper money are the money which are issued by the central bank of a country in form of paper that acts as an unlimited legal tender in the economy. It is also known as legal tender money as it is legally accepted as the common medium of exchange in the economy.