Which of the following is NOT an example of fiat money in India?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹200 bank cheque.
The ₹200 bank cheque is NOT an example of fiat money in India.
Fiat money refers to currency that has no intrinsic value but is established as legal tender by government regulation, such as ₹500 currency notes, ₹20 coins, and ₹10 coins. These are all examples of fiat money because they are officially issued by the government and accepted for transactions. In contrast, a bank cheque represents an instruction to transfer funds and is not considered fiat money itself.