Question

Limited legal money is the one no one can refuse to accept upto ________.

• A. Rs.100
• B. Rs.25
• C. Rs.50
• D. Rs.10

Answer 1

The correct option is B Rs.25

Limited legal tender refers to the portion of legal tender in the economy which consist of smaller units of money like a unit coin etc. For example in case of India, 50 paise coins and 25 paise coins are the limited legal tender which can be offered as legal tenders to clear the dues of 10 rupees and 1 rupee respectively. The highest amount which can be cleared using limited legal tender and which is generally accepted in the economy is Rs. 25.