Which of the following statements is/are true about currency notes?
i. They do not have intrinsic value.
ii. They can be called fiat money.
iii. They are not legal tenders.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Only i and ii.
Statements i and ii are true about currency notes. Currency notes lack intrinsic value, meaning their worth isn't based on the material they are made of. They function as fiat money because their value is declared by the government. Statement iii is false; in India, currency notes issued by the Reserve Bank of India are indeed legal tenders, meaning they must be accepted as a medium of payment within the country.