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Which of the following is NOT backed by gold but by government securites?

Which of the following is NOT backed by gold but by government securites?

  • A.
    Fiduciary note
  • B.
    Token money
  • C.
    Commodity money
  • D.
    Fiat money
Correct Answer: Option A
Explanation

Fiduciary note. This term refers to that portion of anote issue, whether that of a Government or of a bank, which is not protected by a specific backing of metal or coin or assets capable of being converted into coin or bullion on demand.