CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Characteristics of Money

How we are ab...

Question

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

Open in App

Solution

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.

Suggest Corrections

thumbs-up

0

Similar questions

What is 'legal tender'? What is 'fiat money'?

Q. What is a 'legal tender'? What is 'fiat money?

What is a ‘legal tender’? What is ‘fiat money’?

Q. With reference to Fiat Money, consider the following statements:
1) It is the money declared by a government to be legal tender.
2) It is the money without intrinsic value.
3) It is the state issued money which is neither legally convertible to any other thing, nor fixed in value terms of any objective standard.
Which of the statements given above is/are correct?

Q. Distinguish between Legal Tender Money and Credit Money or Bank Money.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Characteristics of Money

ECONOMICS

Watch in App

explore_more_icon

Explore more

Characteristics of Money

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon