Which of the following statement is not true?

2021

Which of the following statement is not true?

  1. A.

    Paper currency is the main currency of the country

  2. B.

    Paper currency has an unlimited legal tender

  3. C.

    Paper currency can be used to settle debts and make payments to an unlimited amount

  4. D.

    None of the above

Attempted by 3 students.

Show answer & explanation

Correct answer: B

Option 1 states paper currency has unlimited legal tender status, which is incorrect. Most jurisdictions limit the amount of cash that can be used for a single transaction.

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