State whether the following statements are true or false. 4. A cheque is a fiat money.

State whether the following statements are true or false.
4. A cheque is a fiat money.

Answer: The above statement is false.  The currency notes and coins issued by the Reserve Bank of India (RBI) and the Government of India (GOI) are collectively called ‘Fiat Money’. Since cheques are not issued by the RBI and GOI, they are not fiat money.

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