BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Any object legally used as money in a country
|
|
|
Money which cannot legally be refused in discharge of a debt
|
|
|
Bank notes where they are in legal circulation
|
|
|
Notes or coins other than the counterfeited ones
|
Detailed explanation-1: -A limited legal tender is that form of legal tender money, which can be paid in discharge of a debt up to a certain limit. Beyond this limit, a person may refuse to accept the payment and no legal action can be taken against him.
Detailed explanation-2: -Detailed Solution. The correct answer is The money which a creditor is under compulsion to accept in settlement of his claims. Legal tender is defined as “any official medium of payment recognized by law, that can extinguish public or private debt, or meet a financial obligation.”
Detailed explanation-3: -Bills of exchange, bank drafts, postal orders, and cheques are examples of non-legal tender money. These types of money are usually accepted but legally there is no obligation to accept them.
Detailed explanation-4: -When the legal tender can be accepted without any limit, then it is known as unlimited legal tender, when the legal tender is accepted with a certain maximum limit then it is known as limited legal tender. You can read about the RBI – Know More About Reserve Bank of India in the given link.
Detailed explanation-5: -Banknotes and coins are two types of legal tender money in India. Every banknote issued by Reserve Bank of India (₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2000), unless withdrawn from circulation, shall be legal tender at any place in India.