BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Currency notes
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Cheques
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Bank Draft
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Promissory notes
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Detailed explanation-1: -Every banknote issued by the Reserve Bank of India (₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2000), unless withdrawn from circulation, shall be legal tender at any place in India.
Detailed explanation-2: -The national currency is legal tender in practically every country.
Detailed explanation-3: -Legal tender means banknotes and coins which are offered in payment of debts and which must be accepted.
Detailed explanation-4: -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-5: -Legal tender refers to any currency that is declared as legal by the government while fiat money is referred to as money that is not backed up by any physical commodities such as gold. They are backed by the government. Fiat currencies provide more control to the central banks over the economy.