Which one of the following statements correctly describes the meaning of legal tender money?
The money which is tendered in courts of law to defray the fee of legal cases
Incorrect AnswerThe money which a creditor is under compulsion to accept in settlement of his claims
Correct AnswerThe bank money in the form of cheques, drafts, bills of exchange, etc.
Incorrect Answer The metallic money in circulation in a country
Incorrect AnswerExplanation:
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. A creditor is obligated to accept legal tender toward repayment of a debt. Legal tender can only be issued by the national body that is authorized to do so
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By: Abhipedia