Legal Tender Money

Legal tender money is the officially issued money by the authority or central banks which is used for medium of exchange. The currency notes or coins issued by the RBI and the government are legal tender money.

Difference between Fiat Money and Legal Tender Money

  • Fiat money has no intrinsic value, while legal tender is any currency declared legal by a government.
  • Governments can issue fiat currency and make it legal tender by setting it as the standard for debt repayment.
  • The benefit of fiat money is that it gives central banks greater control over the economy, but governments can ....
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Indian Economy & Socio-economic Development