Question

How we are able to identify that which one is FIAT MONEY which one is LEGAL TENDER MONEY?

Answer 1

Fiat money and legal tender money are the same. Fiat Money simply means that the currency notes and coins do not have any intrinsic value. In other words, the real value of the paper (in case of currency notes) and metals (in case of coins) is not equivalent to the face value printed on the notes and coins.