Which of these is a FIAT money?

Five hundred rupee note of RBI

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5 gram Gold coin being sold by commercial banks

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251 gram silver coin with gold coating sold by commercial banks

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Diamond studded ring issued by commercial banks

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Solution

The correct option is A Five hundred rupee note of RBI
FIAT money refers to that money whose face value is greater than its commodity value and which is issued by the order or authority of government. In other words, the value of such money is higher than the value of commodity used to make it. For example- the five hundred rupee note in India used by Reserve bank of India(RBI) has a very low commodity value as compared to its face value which is Rs.500.

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