Currency notes and coins are called:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Fiat Money
Currency notes and coins are referred to as Fiat Money because:
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They have no intrinsic value (not backed by gold or silver).
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Their value is derived from legal authority, meaning they are legal tender by government decree.
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People accept them in exchange for goods and services because the government guarantees their value.