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GS Paper IUPSC Prelims 2018
Banking & Financial System
Question No. 168Interactive Test Mode
00:00
+2-0.66

Q168. Which one of the following statements correctly describes the meaning of legal tender money?

Which one of the following statements correctly describes the meaning of legal tender money?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2018 • Indian Economy

Correct Answer: Option (B) — The money which a creditor is under compulsion to accept in settlement of his claims

Concept & Option Breakdown

Standard Reference Verified

Legal tender is currency declared legally valid by the government for financial obligations, such that a creditor is legally obligated to accept it in settlement of debts.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q168)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (B) — The money which a creditor is under compulsion to accept in settlement of his claims

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Frequently Asked Questions — UPSC Prelims 2018 Q168

What is the official answer for UPSC Prelims 2018 GS Paper I Question 168 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Banking & Financial System) question is Option (B): "The money which a creditor is under compulsion to accept in settlement of his claims". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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Previous QuestionConsider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct?
Next QuestionConsider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments. 3. Treasury bills are issued at a discount from the par value. Which of the statements given above is/are correct?