The correct answer is Option 2: 2 and 3
By definition, legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation. All the issued currency notes are legal tenders that means no one can refuse to accept them as a mode of payment. Whereas, term deposits are not legal tenders.
Here's the breakdown:
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Demand deposits are not legal tenders: This statement is true. Demand deposits (like checking accounts) can be used to make payments via checks but are not considered legal tender themselves.
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Term deposits are legal tenders: This statement is NOT true. Term deposits (fixed deposits) are not legal tender; they are savings instruments that cannot be used directly for transactions.
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Issued currency notes are not legal tenders: This statement is NOT true. Issued currency notes are indeed legal tender; they are officially recognized as a medium of exchange.
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Wheat is not a legal tender: This statement is true. Wheat is a commodity and not a legal tender.
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