When paper money is designated as legal tender, it means that:

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Legal tender refers to a form of payment that must be accepted by law for the settlement of debts or other financial obligations. This means that if paper money is designated as legal tender, then it can be used to make payments for goods and services, and also to pay off debts and taxes. The fact that it is legal tender does not necessarily mean that the government prints or controls its supply, or that it will be accepted by the government itself.

When Paper Money Is Designated as Legal Tender, It Means