Economics · Money and Banking

Which of the following is a correct statement about 'Fiat Money'?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1It is rarely used in modern economic systems
2It is a government-issued currency that is backed by a physical commodity like gold
3Fiat money does not have any regulatory control
4It is a government-issued currency that is not backed by a physical commodity✓

Correct answer

It is a government-issued currency that is not backed by a physical commodity

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Money and Banking?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Money and Banking

Which of the following organizations was instrumental in advocating for the abolition of Sati in India?

Who was the first President of independent India?

Who among the following was the founder of the 'Gadar Party'?

Related Practice Questions