Foundation
Social Science Foundation
Development
Sectors of the Indian Economy
Money and Credit
Question
Differentiate between limited legal tender and unlimited legal tender.
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Solution
1:Limited legal tender money is the money that can be accepted only up to a certain maximum limit. for e.g. In India, one paise coin to 25 paise coin is legal tender up to Rs 25. One can refuse payments in these small coins beyond the sum of Rs 25.
2:Unlimited legal tender money is the money that a person has to accept without any limit of amount. For example, all currency notes and coins of 50 paise are unlimited legal tender money.
2:Unlimited legal tender money is the money that a person has to accept without any limit of amount. For example, all currency notes and coins of 50 paise are unlimited legal tender money.