In the contemporary Canadian economy,the best example of fiat money would be

Question

Quizplus · Accepted Answer

The stock of notes issued by the Bank of Canada is an example of fiat money in the contemporary Canadian economy. Fiat money is a currency that has no intrinsic value and its value is established based on government decree or law. The notes issued by the Bank of Canada are legal tender, meaning that they are accepted as payment for goods and services because the government has declared them to be so. Therefore, they are an example of fiat money. Coins (A) are also an example of fiat money, but notes are more commonly used in everyday transactions. Deposits (B and C) are not considered fiat money, as they represent claims to assets but do not have their own intrinsic monetary value. Finally, the stock of notes in the foreign exchange market (E) could represent either fiat money or foreign currency, but this question refers specifically to the contemporary Canadian economy, so it would not be the best example of fiat money in this context.

In the Contemporary Canadian Economy,the Best Example of Fiat Money