What are the features of a legal tender?

Legally issued by the government

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Consists of only paper notes

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Legally accepted money

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Can be refused if paid in coins

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Solution

The correct option is C Legally accepted money
A legal tender essentially means all the notes and coins that the government legally issues for payment. It means that this money is legally acceptable, and no one can refuse it. Each country has its own legal tender, which is used as its currency.

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