BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Barter
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Fiat
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Legal tender
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Specie
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Detailed explanation-1: -’ Legal tender is the national currency, such as paper money and coins, that is declared by law to be valid payment for debts and financial obligations.
Detailed explanation-2: -’Legal tender’ is the valid money used for payment of the debt and also recognised by the law of the land. It should be accepted for the discharge of debt. The central bank has the sole right to issue banknotes as empowered by the RBI Act of 1934.
Detailed explanation-3: -In India, Paper money are the money which are issued by the central bank of a country in form of paper that acts as an unlimited legal tender in the economy. It is also known as legal tender money as it is legally accepted as the common medium of exchange in the economy.
Detailed explanation-4: -Legal tender means banknotes and coins which are offered in payment of debts and which must be accepted.