Which of the following is NOT considered fiat money? A) Indian Rupee B) Bitcoin C) Chinese Yuan D) Commemorative Coins

Understand the Problem

The question is asking us to identify which option listed is not considered fiat money. Fiat money is a currency that a government has declared to be legal tender, but it is not backed by a physical commodity. We will evaluate each option to determine which one does not meet this criterion.

More Information

Bitcoin is a cryptocurrency and operates independently of a central bank or government, unlike fiat money, which is backed by a government.

Tips

A common mistake is to consider cryptocurrencies like Bitcoin as digital fiat currency, but they lack government backing and central authority.

Sources

• Fiat Money vs. Representative Money - Investopedia - investopedia.com
• Fiat Money: What It Is, How It Works, Example, Pros & Cons - Investopedia - investopedia.com