Question

Rupee is ____________ legal tender.

• A. Unlimited
• B. Limited
• C. Partial
• D. Semi partial

Answer 1

The correct option is B Limited

ANS. B

A limited legal tender is that form of legal tender money, which can be paid in 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. In India, coins function as limited legal tender. Therefore, 50 paise coins can be offered as legal tender for dues up to Rs. 10 and smaller coins for dues up to Rs. 1.