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Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.?
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Read the following statements carefully and choose the correct alterna...
Statement 1: Bank money is a legal tender money.
Statement 2: Bank money is repayable by the banks on demand.
Correct Alternative: (c) Statement 1 is true and Statement 2 is false.
Explanation:
Legal Tender Money:
Legal tender money refers to the money that is recognized by law as a valid medium of exchange for goods and services. It is accepted by law in settlement of all kinds of debts and obligations. Legal tender money is issued and regulated by the government.
Bank Money:
Bank money refers to the money that is created by commercial banks through the process of credit creation. It includes demand deposits, such as current account balances, savings account balances, and fixed deposits held in banks. Bank money is not issued by the government but is created by banks when they provide loans or make purchases.
Statement 1: Bank money is a legal tender money.
This statement is false. Bank money is not considered legal tender money. It is only a claim on legal tender money. Bank money can be used for making payments through various electronic means like cheques, debit cards, and online transfers, but it is not accepted by law as a valid medium of exchange.
Statement 2: Bank money is repayable by the banks on demand.
This statement is true. Bank money is created by banks as a liability on their balance sheets. When a customer deposits money in a bank, the bank becomes liable to repay that amount on demand. The depositor can withdraw the deposited money anytime by writing a cheque or using any other withdrawal method accepted by the bank.
Conclusion:
Based on the explanation above, it can be concluded that Statement 1 is false as bank money is not legal tender money. Statement 2 is true as bank money is repayable by the banks on demand. Therefore, the correct alternative is (c) Statement 1 is true and Statement 2 is false.
Statement 2: Bank money is repayable by the banks on demand.
Correct Alternative: (c) Statement 1 is true and Statement 2 is false.
Explanation:
Legal Tender Money:
Legal tender money refers to the money that is recognized by law as a valid medium of exchange for goods and services. It is accepted by law in settlement of all kinds of debts and obligations. Legal tender money is issued and regulated by the government.
Bank Money:
Bank money refers to the money that is created by commercial banks through the process of credit creation. It includes demand deposits, such as current account balances, savings account balances, and fixed deposits held in banks. Bank money is not issued by the government but is created by banks when they provide loans or make purchases.
Statement 1: Bank money is a legal tender money.
This statement is false. Bank money is not considered legal tender money. It is only a claim on legal tender money. Bank money can be used for making payments through various electronic means like cheques, debit cards, and online transfers, but it is not accepted by law as a valid medium of exchange.
Statement 2: Bank money is repayable by the banks on demand.
This statement is true. Bank money is created by banks as a liability on their balance sheets. When a customer deposits money in a bank, the bank becomes liable to repay that amount on demand. The depositor can withdraw the deposited money anytime by writing a cheque or using any other withdrawal method accepted by the bank.
Conclusion:
Based on the explanation above, it can be concluded that Statement 1 is false as bank money is not legal tender money. Statement 2 is true as bank money is repayable by the banks on demand. Therefore, the correct alternative is (c) Statement 1 is true and Statement 2 is false.
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Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.?
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Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.?.
Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.?.
Solutions for Read the following statements carefully and choose the correct alternative from the following: Statement 1: Bank money is a legal tender money. Statement 2: Bank money is repayable by the banks on demand. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.? in English & in Hindi are available as part of our courses for Class 12.
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