Q.

Which one of the following is an example of optional money?

A. Currency note
B. Coins
C. Cheque
D. Bond
Answer» C. Cheque
Explanation: On the basis of acceptability, money has been classified into legal tender and optional money. Legal tender money is enforced by law. Optional money is that money which may or may not be accepted as a means of payment; it has no legal sanction. Different credit instruments, like, cheques, bank drafts, etc., are the examples of optional money.
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