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JAMB Economics 1991 Question 32

Question 32

Money and Inflation

Fiduciary issue is that part of

  1. A.the issue of notes backed entirely by gold
  2. B.a country's currency which is not negotiable
  3. C.the issue of notes not backed by gold
  4. D.a country's currency officially issued
Show the answer and explanation

Answer: C (the issue of notes not backed by gold)

Explanation

The fiduciary issue is currency issued on trust (backed by government securities), not by gold.