Legal tender in the form of banknotes and coins that are readily acceptable for the settlement of debts.
Demonetization refers to the withdrawal of a specific form of currency from circulation, rendering it no longer recognized as legal tender. This economic policy is often implemented to combat issues like corruption, counterfeit currency, and inflation.
Fiat money is a type of currency that is made legal tender by government law or regulation, without backing by a physical commodity like gold or silver. Its value derives from the trust and authority of the government that issues it.
Lawful money refers to physical currency that a government has declared to be legally acceptable for financial transactions within its jurisdiction. This includes banknotes and coins that are officially recognized as a medium of exchange.
Legal tender refers to the money that must be accepted in discharge of a debt. It can be limited or unlimited depending on the specified limits of payment.
Token money refers to currency in the form of tokens like coins or paper bills that have little intrinsic value but are used as legal tender based on a society's regulatory framework.
