Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which one of the following is considered as limited legal tender according to the Coinage Act 2011?
Which one of the following is considered as limited legal tender according to the Coinage Act 2011?
- Rs. 1 and above
- Cheques and drafts
- Cash transactions for less than Rs.2 lakh
- Below 50 paisa (correct)
Which Act states that every bank note is legal tender in India?
Which Act states that every bank note is legal tender in India?
- Coinage Act 2011
- Finance Act 2017
- Cheque and Draft Act
- RBI Act 1934 (correct)
What is the penalty for cash transactions beyond Rs.2 lakh according to the Finance Act 2017?
What is the penalty for cash transactions beyond Rs.2 lakh according to the Finance Act 2017?
- No penalty
- 50% of the amount
- Double the amount
- Entire amount (correct)
Which one of the following correctly describes the meaning of legal tender money?
Which one of the following correctly describes the meaning of legal tender money?
Signup and view all the answers
According to the Coinage Act 2011, which denomination of coins are withdrawn?
According to the Coinage Act 2011, which denomination of coins are withdrawn?
Signup and view all the answers
Study Notes
Legal Tender in India
- One rupee notes and fifty paise coins are considered as limited legal tender according to the Coinage Act 2011.
- The Reserve Bank of India Act 1934 states that every bank note is legal tender in India.
- The penalty for cash transactions beyond Rs.2 lakh is a fine of equal amount, according to the Finance Act 2017.
- Legal tender money is a medium of exchange that must be accepted in payment of debts, correctly describing the meaning of legal tender money.
- The Coinage Act 2011 has withdrawn fifty paise coins and other coins below fifty paise.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of economics with this quiz based on Mrunal's Economy Handout Lecture 1-2
