What is that money which is accepted as a medium of exchange because o
| What is that money which is accepted as a medium of exchange because of the trust between the payer and the payee?
Right Answer is: B
- Fiduciary money depends for its value on the confidence that it will be generally accepted as a medium of exchange.
- Unlike fiat money, it is not declared legal tender by the government, which means people are not required by law to accept it as a means of payment.
- Examples of fiduciary money include cheques, banknotes, or drafts.