The question asks why currency notes and coins are called 'fiat money'. We need to understand the definition of fiat money and then evaluate each option against this definition.
C) Derive their value from the order/guarantee of the issuing authority, not intrinsic value. This is the defining characteristic of fiat money. Its value is based on government decree and the trust placed in the issuing authority, not on the material composition of the currency itself.
The question asks for the meaning of "legal tender" in the context of currency notes and coins. Understanding this term is crucial for comprehending the fundamental nature of money in an economy.
Correct Option: B) Cannot be legally refused by any citizen in settlement of any transaction. This option accurately describes the characteristic of legal tender, meaning that it must be accepted for the payment of debts and transactions.
The question asks to identify which of the given options is NOT a legal tender in India. Understanding the definition of 'legal tender' is crucial to answer this question.
Correct Option: C) A cheque drawn on a savings account is not a legal tender. While it is a common method of payment, its acceptance is voluntary and not mandated by law as legal tender.
The question asks about the issuing authorities for currency notes and coins in India. This is a factual question related to the monetary system and the roles of key financial institutions in India.
B) Reserve Bank of India ; Government of India is the correct answer. The Reserve Bank of India issues all currency notes in India except the one-rupee note, while all coins and the one-rupee note are issued by the Government of India.
This question asks to identify the type of bank deposit that is payable on demand from the account holder. We need to understand the characteristics of different types of bank deposits to determine which one fits this description.
Correct Option: C) Demand deposits are those deposits that are payable by the bank on demand from the account holder. These include current accounts and savings accounts, where funds can be withdrawn at any time without prior notice.
The question asks to identify the type of deposit that has a fixed period to maturity. We need to recall the definitions of different types of bank deposits.
Based on the definitions, "time deposits" perfectly describe fixed deposits which have a fixed period to maturity.
B) Time deposits — Fixed deposits are a classic example of time deposits because they are held for a specific, fixed period and mature only after that duration. They are not accessible on demand.