fiduciary issue


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Related to fiduciary issue: fiat money

fiduciary issue

or

fiat currency

CURRENCY issued by a government that is not matched by government holdings of GOLD or other securities. In the 19th century most currency issues were backed by gold, and people could exchange their BANK NOTES for gold on demand. Nowadays most governments have only minimal holdings of gold and other securities to redeem their currency so most of their currency issues are fiduciary See MONEY SUPPLY.
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