Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Cheques, drafts are examples of:

• A. Fiat money
• B. Commodity money
  
• C. Fiduciary money
  
• D. None of these

Answer 1

The correct option is C Fiduciary money


<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Fiduciary money refers to money backed up by trust between the payer and payee. Example: Cheques are fiduciary money as these are accepted as a means of payment on the basis of trust but not on the basis of any order of the government.