Question 45
Money and InflationIn Nigeria, cheques are not money because
- A.their use is confined to business houses
- B.there are no banks in rural areas
- C.they are no legal tender
- D.they are not generally acceptable as a medium of exchange
- E.most Nigerians cannot identify them.
Show the answer and explanation
Answer: C (they are no legal tender)
Explanation
A cheque is only an order to a bank to pay; it is not legal tender, which nobody can refuse in payment.