Correct Answer: Its value is backed by the issuing authority

Solution : The correct answer is Its value is backed by the issuing authority.

Coins issued by the government and central bank are considered legal tender, which means they must be accepted for transactions. Refusing to accept legal tender coins can be a violation of the law. The primary reason for holding a ten-rupee coin is its monetary value. Coins are legal tender, and people accept and use them for transactions. They have intrinsic value that can be spent or exchanged for goods and services.