Q. Which of the following statements are correct?
1. Fiat money is a term used for gold coins
2. Currency deposit ratio is the proportion of total deposits that a commercial bank has to keep as a reserve.
Choose the correct option from the options given below:
Answer:
None
Notes: Currency notes and coins are called fiat money. They don’t have intrinsic value like gold or silver coin. The currency-deposit ratio measures the relationship between the cash people have on hand and what they have in their accounts.