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Question
Distinguish between limited legal tender and unlimited legal tender.
Solution
Money which has legal sanction behind it and accepted as a means of payment is known as legal tender money.
It is of two types:
| Limited Legal Tender Money | Unlimited Legal Tender Money |
| Money which no person can be forced to accept beyond a certain maximum limit is called limited legal tender money. | Money which is accepted by the people to an unlimited extent is called unlimited legal tender money. |
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