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According to the Indian Coinage Act, 1906 as summarised in the lesson, the use of 50 paisa coins as legal tender is capped at a specific value per transaction. What is that cap?
Answer & Solution
Correct answer: B.
1. The lesson summarises the legal-tender position under the Indian Coinage Act, 1906.
2. Fifty paisa coins are legal tender for any sum not exceeding ten rupees.
3. Coins smaller than fifty paisa are legal tender for any sum not exceeding one rupee.
4. Rupee coins are legal tender for unlimited amounts.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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