Which of the following is a legal tender?

Assessment: JAMB UTME - Commerce - 2016 Subject: Commerce

Question 1 Report

Which of the following is a legal tender?
Answer Details
A legal tender is a form of payment recognized by law as valid for meeting a financial obligation. In simple terms, it is a currency that must be accepted if offered in payment of a debt. Of the options listed, only bank notes are considered legal tender. Bank notes are issued by a country's central bank and are generally accepted as a form of payment for goods and services. Cheques, travellers cheques, and goldsmith receipts are not considered legal tender. Cheques and travellers cheques are a type of negotiable instrument that allow for the transfer of funds from one bank account to another, but they are not considered legal tender. Goldsmith receipts are a type of certificate that represents ownership of a specific amount of gold, but they are not widely accepted as a form of payment and are not considered legal tender.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning