An issue of bank-notes not backed by gold but by government securities is known as?
Answer Details
An issue of bank-notes not backed by gold but by government securities is known as a fiduciary issue.
A fiduciary issue is a type of currency that is not backed by a commodity such as gold, but rather by the government's promise to pay. In this case, the government securities serve as collateral to ensure that the value of the currency remains stable.
Fiduciary issues are common in modern economies, as most currencies today are not backed by gold or any other commodity. Instead, the value of the currency is based on the strength of the issuing government's economy and its ability to maintain stability and control inflation.
In summary, a fiduciary issue is a type of currency that is not backed by gold, but by government securities, and is a common feature of modern economies.