Legal Tender is the word come from the Middle French word ” Tender”, which means “to offer”.
In the Latin word the “Legal Tender” is called tendere, and the sense of tender as an offer is related to the etymology of the English word extend.
It is mandatory that the buyer or seller or the debtor or creditor have must faith in a common medium of exchange to carry business. The Legal Tender is the only mode of exchange who is able to discharge any transaction lawfully.
Here are some MCQ / Quiz questions on Legal Tender.
Let’s start the MCQs / Quiz
01) The term “Legal Tender” is come from which of the following language. which means “to offer”?
A) Middle French
B) Latin
C) English
D) Arabic
Correct answer is option “A”
02) Which of the following medium of exchange on which the debtor and creditor or buyer and the seller rely on lawfully?
A) Commodity Money
B) Metallic Money
C) Fiat Money
D) Legal Tender
Correct answer is option “D”
03) In this economic environment the “Coins and Banknotes” are usually defined as _____________. Fill in the blank with suitable option.
A) Fiat Money
B) Legal Tender
C) Commodity Money
D) Metallic Money
Correct answer is option “B”
04) Is the personal checks, credit cards, and other non-cash mode of exchange for payment can be treated as the Legal Tender?
A) Yes, they are treated as the Legal Tender.
B) Yes, these payments are capable to make transation
C) No, it is not treated as the Legal Tender
D) None of the above options
Correct answer is option “C”
05) Weather any specific foreign currency may be treated as the legal tender.
A) Yes, in some cases
B) No, never
C) Legal Tender is a local medium of exchange
D) None of the above options
Correct answer is option “A”
05) What is the process of the act of stripping a currency unit of its status as legal tender?
A) Delegalization
B) Demonetization
C) Recirculation
D) De-printing
Correct answer is option “B”
06) What can be the reason behind demonetization of legal tender of any country?
A) The nation wants to change its national currency
B) The nation wants to remove the current form of currency from circulation
C) The nation wants to replace the old currency with new notes and coins
D) The national head wants to do so
E) All of the above except option D
Correct answer is option “E”
07) The opposite of demonetization is known by which of the following term ?
A) Re-printing
B) Re-legalization
C) Re-monetization
D) Re-circulation
Correct answer is option “C”
08) What are the characteristics from the following of the process of Re-monetization of the currency?
A) Restored again the stetus of demonetised currency as legal tender.
B) Introduce the new notes or coins of the same denomination for replace the old one.
C) Bank does not issued the old printed currency of the denomination which the government want to replace.
D) Only option “C” from the above
E) Only option “A” & “B” from the above
F) Only option “A”, “B” & “C” from the above
Correct answer is option “F”
09) Recently in which year from the following, the process of demonetization of currency took place in India?
A) 2015
B) 2016
C) 2017
D) 2018
Correct answer is option “B”
10) Total how many times the process of demonetization of currency took place in Independent India so far yet?
A) Two
B) Three
C) Four
D) Five
Correct answer is option “C”
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