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प्रश्न
Why is money referred to as legal tender?
What is legal tender?
Why is money called legal tender?
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उत्तर
Legal tender is any currency declared legal by a country's monetary authority. No one can refuse to accept it as a mode of payment.
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संबंधित प्रश्न
Currency and ______ are two modern forms of money.
Who regulates money supply in India?
Money whose value as a commodity is equal to its face value is called:
Which of the following institutions is authorised to issue currency in India?
Which one of the following is not a modern form of money?
______ are termed as Legal Tender Money.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank money is legal tender money.
Reason (R): Cheques drawn on demand deposits can be refused by anyone as a mode of payment. Hence, demand deposits (i.e. bank money) are not legal tenders they are optional.
Read the-following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Currency and bank money are the two modern forms of money.
Reason (R): Currency is high powered money.
Match the following:
| Column I | Column II | ||
| A. | Currency | (i) | Something which is commonly used as medium of exchange |
| B. | Bank money | (ii) | Currency and demand deposits |
| C. | Money | (iii) | Bank demand deposits |
| D. | Modern form of money | (iv) | Paper notes + coins |
Distinguish between fiat money and bank money.
