Question

______ refers to the currency notes and coins being issued by the monetary authorities of India (RBI and government of India) as a legal medium of payment. 

Options

• Legal tender

• Fiat money

• Both Legal tender and Fiat money

• None of the above

Answer 1

Both Legal tender and Fiat money refer to the currency notes and coins being issued by the monetary authorities of India (RBI and government of India) as a legal medium of payment. 

Explanation:

Lawful tender refers to the currency notes and coins that the Indian monetary authorities (RBI and government) have issued as a legal medium of payment.