Legal tender is money that a government has required to be accepted in settlement of debts. It is usually fiat money, which means it has no intrinsic value and is not backed by a physical commodity like gold or silver. Legal tender is important because it provides a standard form of payment that everyone must accept, which helps to facilitate trade and commerce.

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Legal Tender Is

Question 64

Multiple Choice

Legal tender is

A) money that must be backed by gold.
B) money that cannot be counterfeited.
C) money that has a value other than as a currency.
D) money that a government has required to be accepted in settlement of debts.

Correct Answer: