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WAEC Commerce 1991 (August) Question 92

Question 92

Money

That part of the money in circulation not backed by gold is known as

  1. A.exchange equalization fund
  2. B.fiduciary issue
  3. C.notes and coins
  4. D.ordinary note issue
  5. E.fictitious assets
Show the answer and explanation

Answer: B (fiduciary issue)

Explanation

The fiduciary issue is currency backed only by government securities and trust, not by gold.