Read the following statements - Assertion (A) and Reason (R):
Assertion: No citizen can refuse to take currency notes for settlement of economic transactions.
Reasoning: Currency notes are the legal tender.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
No citizen can refuse to accept the currency notes and coins for settlement of economic transaction because currency notes and coins are legal tender. By definition, legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation.