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Topic Legal tender
Asked 3 times across 2 UPSC exams over 7 years (2017–2024), peaking in 2018.
Key insights
- Most tested in CSE — 2 of 3 PYQs
- First appeared in CDS 2017 — 1 years before CSE 2018 (allied exams preview CSE)
- Most asked in 2018
- Recurs across 3 years (2017–2024)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CDS 2017 → CSE 2018
How the concept evolved
Rising — more than half its appearances (3 of 3) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CSE2024
Consider the following statements in respect of the digital rupee
- It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy
- It appears as a liability on the RBI's balance sheet
- It is insured against inflation by its very design
- It is freely convertible against commercial bank money and cash
Which of the statements given above is/are correct ?
- A 1 and 2 only
- B 1 and 3 only
- C 2 and 4 only
- D 1, 2 and 4 ✓
✓ Correct answer: (D)
Economy › Money/Banking/Finance
CSE2018
Which one of the following statements correctly describes the meaning of legal tender money ?
- A The money which is tendered in courts of law to defray the fee of legal cases
- B The money which a creditor is under compulsion to accept in settlement of his claims ✓
- C The bank money in the form of cheques, drafts, bills of exchange, etc.
- D The metallic money in circulation in a country
✓ Correct answer: (B)
Economy › Money/Banking/Finance
CDS2017
Which of the following statements about Bitcoin is/are correct?
- It is a decentralized virtual currency
- It is generated through complex computer software systems
- The Reserve Bank of India recognized it as a legal tender in January 2016
Select the correct answer using the code given below.
- A 1 only
- B 1 and 2 only ✓
- C 2 and 3 only
- D 1, 2 and 3
✓ Correct answer: (B)
Economy › Money/Banking/Finance
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