Advertisements
Advertisements
Question
Which statement correctly distinguishes demand deposits from currency notes?
Options
Both are legal tender and must be accepted in payment
Demand deposits are legal tender, currency notes are not
Currency notes are legal tender, demand deposits are not
Neither demand deposits nor currency notes are legal tender
MCQ
Advertisements
Solution
Currency notes are legal tender, demand deposits are not
Explanation:
Currency notes must be accepted in settlement of debts as legal tender, while cheques drawn on demand deposits can legally be refused.
shaalaa.com
Is there an error in this question or solution?
