BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accepted only by the Government
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Accepted by the people and the Government as per the law
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Not accepted for business purposes by the law
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Not accepted by the government
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Detailed explanation-1: -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-2: -Legal tender is any currency declared legal by a government. Many governments issue a fiat currency and then make it legal tender by setting it as the standard for repaying debt.
Detailed explanation-3: -The legal tender character of the bank notes in denominations of ₹ 500 and ₹ 1000 mentioned above, issued by the Reserve Bank of India was withdrawn with the promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 (GoI Ordinance No. 10 of 2016 dated December 30, 2016).
Detailed explanation-4: -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.