Money that is acceptable because the government requires that it be accepted in payment of debt is _____
A) legal tender.
B) commodity money.
C) bad money.
D) broad money.
E) representative money.

Question

Quizplus · Accepted Answer

Legal tender is money that the government requires to be accepted in payment of debt. This means that if someone owes a debt to another person or to the government, they must accept legal tender as a form of payment. For example, in the United States, legal tender includes coins and bills issued by the federal government, such as US dollars.

Money That Is Acceptable Because the Government Requires That It