What is that money which is accepted as a medium of exchange because of the trust between the payer and the payee?
Fiduciary money
The correct answer is: Fiduciary money. It is money that is accepted as a medium of exchange because of the trust or faith people have in the issuer, rather than its intrinsic value.
Similar Questions
With respect to the monetary policy, which of the following statements is INCORRECT?
Currency deposit ratio equals:
Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system?
As per the government rules, how much percentage of advance tax needs to be paid by 15th June by an individual who is liable to pay advance tax?
Match the following.
Term
Meaning
1. Globalisation
a. Process of reducing or removing restrictions on international trade.
2. Privatisation
b. Process of interaction and integration among the people, companies and government of different nations.
3. Liberalisation
c. transfer of a business, industry, or service from public to private ownership and control
Which among the following is an example of micro-economic variable?
Medium-term loans are provided for a period of ________.
What would happen to the demand curve when there is an increase in the price of substitute products?
If the inflation in an economy is rising steadily, the Central Bank might _____
What is the name given to the graph that shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level in economic terms?
Important Questions from Basic Banking Concepts
______ is the rate of interest commercial banks have to pay to RBI if they borrow money from it in case of shortage of reserves.
The account maintained by a businessman with his bankers is known as
Bull' and 'Bear' are associated with which of the following commercial activities?
What is the meaning of 'Take off stage' in an economy?
The average daily balance that a bank is required to maintain with the Reserve Bank as a share of such per cent of its Net demand and time liabilities (NDTL) that the Reserve Bank may notify from time to time in the Gazette of India is called as _________.
