Fiduciary issue is that part of?

  • A the issue of notes backed entirely by gold
  • B a country's currency that is not negotiable
  • C the issue of notes not backed by gold
  • D a country's currency officially issued
jamb 2020economics

The correct answer is C. the issue of notes not backed by gold

Fiduciary issue refers to the part of a country’s currency that is not backed by gold or silver but by trust.

It is a promise to pay specified amounts of gold and silver.

These promises are initially issued by individuals or companies as banknotes or as transferable book entries that came to be called deposits

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