Question -
Answer -
1. Legal tender:
(a) Legally, money is anything proclaimed by law as a medium of exchange.
(b) Paper notes and coins (together called currency) is money as a matter of law.
(c) Nobody can refuse its acceptance as medium of exchange.
2. FIAT Money: It is defined as a money which is under the ‘FIAT’ (order/authority) of the government to act as a money.