{"id":93784,"date":"2025-06-01T11:57:08","date_gmt":"2025-06-01T11:57:08","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=93784"},"modified":"2025-06-01T11:57:08","modified_gmt":"2025-06-01T11:57:08","slug":"which-one-of-the-following-is-an-example-of-optional-money","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-is-an-example-of-optional-money\/","title":{"rendered":"Which one of the following is an example of optional money ?"},"content":{"rendered":"

Which one of the following is an example of optional money ?<\/p>\n

[amp_mcq option1=”Currency note” option2=”Coins” option3=”Cheque” option4=”Bond” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC Combined Section Officer – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nOptional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the payee. Unlike legal tender (currency notes and coins issued by the central bank\/government), it is not legally compulsory for everyone to accept optional money in payment. A cheque is a classic example of optional money; a seller or creditor is not legally bound to accept a cheque, they can insist on payment in legal tender.
\n<\/section>\n
\n– Legal Tender: Currency (notes and coins) that a debtor is legally permitted to offer a creditor in payment of a debt, and the creditor is legally required to accept.
\n– Optional Money (Fiduciary Money): Money accepted based on trust, not legal compulsion.
\n– Examples of Optional Money: Cheques, Bank Drafts, Promissory Notes (in certain contexts).
\n<\/section>\n
\nWhile cheques are optional money, they form a crucial part of the modern payments system, facilitating large-value transactions and reducing the need for carrying large amounts of cash.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following is an example of optional money ? [amp_mcq option1=”Currency note” option2=”Coins” option3=”Cheque” option4=”Bond” correct=”option3″] This question was previously asked in UPSC Combined Section Officer – 2024 Download PDFAttempt Online Optional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the … <\/p>\n

Detailed SolutionWhich one of the following is an example of optional money ?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1090],"tags":[1103,1120,1190],"class_list":["post-93784","post","type-post","status-publish","format-standard","hentry","category-upsc-combined-section-officer","tag-1103","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWhich one of the following is an example of optional money ?<\/title>\n<meta name=\"description\" content=\"Optional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the payee. Unlike legal tender (currency notes and coins issued by the central bank\/government), it is not legally compulsory for everyone to accept optional money in payment. A cheque is a classic example of optional money; a seller or creditor is not legally bound to accept a cheque, they can insist on payment in legal tender. - Legal Tender: Currency (notes and coins) that a debtor is legally permitted to offer a creditor in payment of a debt, and the creditor is legally required to accept. - Optional Money (Fiduciary Money): Money accepted based on trust, not legal compulsion. - Examples of Optional Money: Cheques, Bank Drafts, Promissory Notes (in certain contexts).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-is-an-example-of-optional-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following is an example of optional money ?\" \/>\n<meta property=\"og:description\" content=\"Optional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the payee. Unlike legal tender (currency notes and coins issued by the central bank\/government), it is not legally compulsory for everyone to accept optional money in payment. A cheque is a classic example of optional money; a seller or creditor is not legally bound to accept a cheque, they can insist on payment in legal tender. - Legal Tender: Currency (notes and coins) that a debtor is legally permitted to offer a creditor in payment of a debt, and the creditor is legally required to accept. - Optional Money (Fiduciary Money): Money accepted based on trust, not legal compulsion. - Examples of Optional Money: Cheques, Bank Drafts, Promissory Notes (in certain contexts).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-is-an-example-of-optional-money\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:57:08+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which one of the following is an example of optional money ?","description":"Optional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the payee. 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