Question

Assertion (A): No individual in India can legally refuse a payment made in rupees.

Reason (R): In India the rupee is authorized by the State Governments.

Options

• Both (A) and (R) are true, and (R) is the correct explanation of (A).

• Both (A) and (R) are true, but (R) is not the correct explanation of (A).

• (A) is true, but (R) is false.

• (A)is false, but (R) is true.

Answer 1

(A) is true, but (R) is false.

Explanation:

As per Indian law, no other individual or organisation is allowed to issue currency. Moreover, the law legalises the use of rupees as a medium of payment that cannot be refused in settling transactions in India. No individual in India can legally refuse a payment made in rupees. Hence, the rupee is widely accepted as a medium of exchange.