Solved UPSC CDS/OTA Question
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Q · Money and Types of MoneyMedium · 45s
Q₂. Which of the following best describes fiduciary money?
TopicMoney and Types of Money
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Fiduciary money (like cheques, drafts) is accepted because of trust between parties; it is not backed by any metallic reserve.
Final Answer: Option B - Money accepted on the basis of trust