Question

what do u mean by unlimited legal tender? (class 11 economis ISC).....

Answer 1

Answer:

It refers to that form of legal tender money, which can be paid in discharge of a debt of any amount. Legal action can be taken against a person who refuses to accept this money. In India, paper notes are unlimited legal tender

Answer 2

Answer:

Unlimited legal tender: You can make money settlement/repay your debt in notes legal tender upto any value.

To be more precise,

If I have borrowed a sum of 10,000 from you and while repaying I cannot repay whole money in coin tender(I can repay 1000 rupees in coin tender), I have to repay in paper legal tender.

Hope it helps you...