Economics · Money and Banking
How is the concept of 'Legal Tender' defined in economics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Cheques and credit cards issued by financial institutions for day-to-day transactions
- 2Gold and silver bullion stored in the reserves of a country's commercial banks
- 3The official currency that a creditor is legally obligated to accept in payment of a debt✓
- 4Any foreign currency that can be traded online in local financial markets
Correct answer
The official currency that a creditor is legally obligated to accept in payment of a debt
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Money and Banking MCQs →Want more practice questions on Money and Banking?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Money and Banking