Which of the below is/are considered as legal tender in India?
- Fiat money
- Demand deposits
- Cheques drawn on savings or current accounts.
Choose the correct option from the following.
Correct answer: A
Explanation
Only fiat money, the currency notes and coins issued under the authority of the state, counts as legal tender that must be accepted to settle debts. Demand deposits and cheques are not legal tender; they are payment instruments a creditor can refuse. So only statement 1 qualifies.