Question

Any medium of exchange, enforced by law is known as ______.

Options

• Legal Tender Money

• Credit Money

• Fiduciary Money

• Full bodied Money

Answer 1

Any medium of exchange, enforced by law is known as legal tender money.

Explanation:

Legal tender money is a medium of exchange that is legally recognised and must be accepted in transactions. It is issued by the government and the Central Bank, which makes it legally valid for settling debts.