Sushma tried to discharge her debt of ₹ 25,000 by giving one rupee coins which were not accepted because coins are:
Sushma tried to discharge her debt of ₹ 25,000 by giving one rupee coins which were not accepted because coins are:
(a) Part of Money Supply
(b) Limited Legal Tender
(c) Unlimited Legal Tender
(d) None of these
Anurag Pathak Changed status to publish December 15, 2023
Ans – (b)
Explanation:-
Limited Legal Tender:
It refers to that form of legal tender money, which can be paid in the 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.
In India, coins are limited legal tender.
For example, as per the Coinage Act, 2011, coins shall be legal tender in case of a coin of any denomination not lower than one rupee, for any sum not exceeding ₹ 1,000.
Anurag Pathak Changed status to publish December 15, 2023
