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Legal tender in India includes

  • A.Notes issued by the Finance Ministry
  • B.Notes issued by the RBI only
  • C.Gold and notes
  • D.Coins and bank notes

Answer: D

Legal tender includes coins and bank notes.

Coins issued by the government are limited legal tender - beyond a certain amount they need not be accepted - while bank notes issued by the RBI are unlimited legal tender, carrying the Governor's promise to pay the bearer.

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