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Yuan dynasty banknotes are the earliest known fiat money. Fiat money is a currency established as money by government regulation or law. The term derives from the Latin fiat (let it become, it will become) used in the sense of an order or decree. It differs from commodity money and representative money.
Both names are perfectly good, but in slightly different ways. Renminbi is the official name of the currency introduced by the Communist People's Republic of China at the time of its foundation in 1949. It means the people's currency. Yuan is the name of a unit of the renminbi currency. Something may cost one yuan or 10 yuan. It would not be correct to say that it cost 10 renminbi. An analogy can be drawn with pound sterling (the official name of the British currency) and pound - a denomination of the pound sterling.