Here is Question No. 46 a part of our series on UPSC Prelims 2018
Q46. Which one of the following statements correctly describes the meaning of legal tender money?
(a) The money which is tendered in courts of law to defray the fee of legal cases.
(b) The money which a creditor is under the compulsion to accept in settlement of his claims.
(c) The bank money in the form of cheques, drafts, bills of exchange, etc.
(d) The metallic money in circulation in a country.
Answer: B
- Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation. The national currency is legal tender in practically every country. A creditor is obligated to accept legal tender toward repayment of a debt.
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