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Money and Its Functions · Question 27 of 57

Question 27

MediumOriginal question

Which of these is NOT legal tender?

A ₹100 noteCorrect answerYour answerA ₹10 coinCorrect answerYour answerA chequeCorrect answerYour answerA ₹500 noteCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A cheque is an order to a bank to pay; a seller may refuse it.
Notes and coins issued under law must be accepted.

Worth noting

Demand deposits are money, because they are widely used to pay, but they are not legal tender.

Concept: Cheques are not legal tender
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsLegal tender and fiat money

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