Question:medium

Currency notes and coins are called:

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Notes and coins = Fiat Money. Broad money and narrow money are aggregates; currency base is high-powered money.
Updated On: Apr 2, 2026
  • Fiat Money
  • Broad Money
  • Currency Base
  • Narrow Money
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The Correct Option is A

Solution and Explanation

Step 1: Define Fiat Money.
Fiat money is government or central bank-issued currency that has no intrinsic value but is legally recognized and accepted as a medium of exchange. Examples include notes and coins.

Step 2: Distinguish from other terms.
- Broad Money: Encompasses currency, demand deposits, time deposits, and other liquid assets.
- Currency Base: Refers to high-powered money, comprising currency in circulation and bank reserves.
- Narrow Money: Defined as M1, which includes currency in circulation and demand deposits; it is not restricted to coins and notes.

Step 3: Apply to the question.
As the question specifically mentions notes and coins, these fall under the definition of Fiat Money.

Final Answer:
\[\boxed{\text{Fiat Money}}\]
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