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Question
Distinguish between limited legal tender and unlimited legal tender.
Distinguish Between
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Solution
| Limited Legal Tender Money | Unlimited Legal Tender Money | |
| 1. | Money which no person can be forced to accept beyond a certain maximum limit is called limited legal tender money. | Money which is accepted by the people to an unlimited extent is called unlimited legal tender money. |
| 2. | Coins of small denominations, namely 5, 10, 20, and 25 paise coins, are legal tender money only up to ₹ 1000. A person may refuse to accept it beyond that limit. | Currency notes of all denominations are unlimited legal tender. |
| 3. | It is not compulsory to accept this money beyond the legal limit. | It is compulsory to accept this money for any amount of payment. |
| 4. | Can be refused if used beyond the permitted limit. | Cannot be refused if used for any legal transaction. |
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