Concept:Fiduciary issue refers to currency notes issued without full metallic or gold backing.
Explanation:Central banks are allowed to issue notes beyond the amount of gold or precious metal they hold.
This extra amount is called fiduciary issue.
It is not backed by gold or convertible assets.
Instead, it relies on the confidence and authority of the government.
Thus, fiduciary issue is the part of currency issued purely on trust, not on gold reserves.
Answer:C. the issue of notes not backed by gold