Forms of Money

Money that is issued by the authority of the government is called

• full bodied money

• credit money

• fiat money

• fiduciary money

Which among these is both Fiat money and Credit Money?

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Nisha had bought a house. While valuing her house, her grandmother valued it in terms of cows and buffaloes. What is the problem that is being faced in the valuation process?

• Lack of double coincidence of wants

• Lack of store of value

• Absence of common unit of value

• Lack of standard for deferred payment

Which of the following is a commonly accepted definition of money?

• Any good which is commonly used as a store of value

• Any good which is exchanged for gold at a fixed rate

• Any good which is acceptable to a bank

• Any good which is commonly accepted as a medium of exchange

Credit money is the money received from banks as credit.

• True

• False

Money may be used as a commodity

• True

• False

Assertion (A) : Notes and coins are money backed with authority of the government.

Reason (R): Notes and coins are legal tenders.

• Both A and R are true and R is the correct explanation of A

• Both A nad R are tru but R is not the correct explanation of A

• A is true but R is false

• A is false but R is true

Which of the following is the credit money

• cheque and draft

• promissory note

• exchange note

• All of these

Who is responsible for circulating all mint and one rupee coin in India

• Ministry of Finance

• RBI

• Ministry of external affairs

• State Government

Which is the correct order of money evolution?

• Commodity money, Paper money, Metal Money

• Commodity Money, Metal Money, Paper Money, Credit Money

• Credit Money, Metal Money, Paper Money

• None of the above