ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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U.S. government announces it will now accept bottle caps as currency
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Cavemen trade stone tools for cows
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Dollar bills and coins we currently use
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Early state bank dollar bills
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Detailed explanation-1: -Gold is not considered fiat money. Fiat money is the currency issued by the government which is not backed by any physical commodity such as silver or gold. Paper currency, coins, and demand drafts are fiat money.
Detailed explanation-2: -Fiat money is backed by a country’s government instead of a physical commodity or financial instrument. This means most coin and paper currencies that are used throughout the world are fiat money. This includes the U.S. dollar, the British pound, the Indian rupee, and the euro.
Detailed explanation-3: -Bitcoin is not a fiat currency because it is not issued by a government or regulated by a central authority. Instead, Bitcoin and other cryptocurrencies are backed by blockchain technology. Cryptocurrencies like Bitcoin are decentralized, meaning no single authority controls their supply or value.
Detailed explanation-4: -Fiat money is physical money-paper money and coins, while representative money is something that represents the intent to pay . Cheque is not a fiat money because it is not backed by the central bank or RBI.