In modern fiat money systems, the value of money is primarily based on:

CA Foundation · Business Economics · MTP · May 2026
In modern fiat money systems, the value of money is primarily based on:
(A) A. Gold reserves
(B) B. Government authority and public trust
(C) C. Exchange rates
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Government authority and public trust

Topics: Money Market

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