Currency notes and coins are called fiat money. They are also called __________.
Show answer & explanation
Correct answer: D
Explanation
The Correct answer is option 4 i.e. Legal tender
- Currency notes and coins, which are considered fiat money, are also referred to as "legal tender."
- Legal tender is a form of currency that is recognized by law and accepted as a medium of exchange for goods and services within a country's jurisdiction.
- They do not have intrinsic value like that of gold or silver coin. Unlike commodity money, fiat money is not backed by any physical commodity instead it is backed by the order or authority of the government.