________ is the money which is accepted as a medium of exchange because of the trust between the payer and the payee.

🔑Key Points:
Fiduciary money is money that is accepted as a medium of exchange due to the trust that exists between the payer and the payee. 
Cheques are fiduciary money as these are accepted as a means of payment on the basis of trust but not on the basis of any order of the government.
Fiduciary money, or currency, refers to banknotes and coins in circulation in the economy.
This is the liquidity available to economic sectors to carry out transactions.

🔴Additional Information:
Credit money is the creation of monetary value through the establishment of future claims, obligations, or debts.
Fiat money is a type of currency that is not backed by any commodity such as gold or silver. It is typically declared by a decree from the government to be legal tender. 
Full-bodied money has a face value not in excess of its intrinsic value as a commodity.