The currency issued by the Central Bank is known as __________ and is backed by supporting reserves and its value is a sovereign guarantee.

CA Foundation · Business Economics · PYQS · January 2025
The currency issued by the Central Bank is known as __________ and is backed by supporting reserves and its value is a sovereign guarantee.
(A) A. Real money
(B) B. Credit money
(C) C. Fiat money
(D) D. Sovereign bonds

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Fiat money

Topics: Money Market

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