ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This includes both coins and paper money. Legal tender is recognized by means of law as a way to settle a public or non-public debt or meet an economic obligation, including tax bills, contracts, and criminal fines or damage. Coins and notes come under the legal tender of India.

Detailed explanation-2: -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-3: -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-4: -Currency is the coin, note, object, etc. that is presented in the form of money. The basic form of money is numbers; currently, the basic form of currency is paper notes, coins, or plastic cards (e.g., credit or debit cards).

Detailed explanation-5: -Cheques and credit card swipes are considered as legal tender. They just function as a substitute and merely depicts the means through which a holder of the check may go on to receive legal tender for the availed debt consequentially.