Solved UPSC CDS/OTA Question
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Q · Money and Types of MoneyMedium · 45s
What is true about fiat money?
TopicMoney and Types of Money
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
Every step explained - no skipped algebra.
Fiat money (like Indian Rupee) has no intrinsic value; it works only because the government declares it legal tender.
Final Answer: Option B - It is accepted because the government enforces it by law