BANKING AFFAIRS

Detailed explanation-1: -2. What is legal tender? Legal Tender is a coin or a banknote that is legally tenderable for discharge of debt or obligation.

Detailed explanation-2: -Legal Tender: Legal tender refers to the money which can be legally used to make payments of debts or other obligations. Fiat money: Fiat money refers to the money which is backed with the order of the government under law. It must be accepted for all debts.

Detailed explanation-3: -Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country.

Detailed explanation-4: -A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.