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Thursday, 02 April 2026
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Which of the following is NOT backed by gold but by government securites?

Which of the following is NOT backed by gold but by government securites?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Fiduciary note
  • B Token money
  • C Commodity money
  • D Fiat money
Correct Answer: Option A
Explanation:
Fiduciary note; This term refers to that portion of a note issue, whether that of a Government or of a bank, which is not protected by a specific backing of metal or coin or assets capable of being converted into coin or bullion on demand.

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