If money is declared to be legal tender, it must be
A)minted from a precious metal.
B)acceptable to citizens of foreign countries.
C)possible to exchange it for an equivalent amount of precious metal.
D)accepted to settle private transactions and it must be used in paying taxes.

Question

Quizplus · Accepted Answer

Legal tender is a form of currency that has been declared valid by a government to be used to settle private and public transactions. In order for money to be legal tender, it does not need to be minted from a precious metal or be accepted by citizens of foreign countries. Additionally, it does not need to be possible to exchange it for an equivalent amount of precious metal. However, it must be accepted to settle private transactions and it must be used in paying taxes within the country where it is legal tender. Therefore, option D is the best choice.

If Money Is Declared to Be Legal Tender, It Must