Consider the following statements : I. In India the minimum denomination coin acceptable for transaction is 50 paise. 2. Coins below 50 paise is not a legal tender for payment. Which of the statements given above is/are correct ?

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Submitted by examrobotsa on

Q: 89 (CDS-II/2011)
Consider the following statements :
I. In India the minimum denomination coin acceptable for transaction is 50 paise.
2. Coins below 50 paise is not a legal tender for payment.
Which of the statements given above is/are correct ?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,48,34,13,3,48,18

keywords: 

{'minimum denomination coin': [0, 0, 0, 1], 'legal tender': [1, 0, 0, 2], 'coins': [2, 0, 1, 1], 'payment': [0, 1, 1, 8], 'transaction': [0, 0, 1, 4], 'paise': [0, 0, 1, 1]}

Option 1 states that in India, the minimum denomination coin acceptable for transaction is 50 paise. This statement is incorrect. The correct denomination for the minimum coin acceptable for transactions in India is 1 rupee. Coins of 50 paise are no longer in circulation and are not considered legal tender.

Option 2 states that coins below 50 paise are not a legal tender for payment. This statement is correct. Coins below the denomination of 50 paise are not considered legal tender and cannot be used for transactions in India.

Based on the analysis of both statements, it can be concluded that option 3, which states "Both 1 and 2," is the correct answer. This means that statement 2 is correct, while statement 1 is incorrect. The minimum denomination coin acceptable for transactions in India is not 50 paise, and coins below 50 paise are not legal tender.