What is the rationale behind why one is ready to hold a ten rupee coin?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Its value is backed by the issuing authority.
The rationale behind accepting and holding a ten-rupee coin lies in its value being backed by the issuing authority, such as the central bank or government. This backing ensures that the coin is recognized as legal tender and holds a specific value due to the trust in the issuing institution's stability and credibility. The intrinsic value of the coin itself is less important; rather, its value is derived from the authority's guarantee, which maintains its acceptability in transactions.