ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the quantity of goods and services that can be bought with a particular sum of money.
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the medium of exchange that must be accepted as money for purchases and as payment for debts.
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an institution that brings together sellers and buyers in financial markets.
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a card that allows you to access the money in your bank account.
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Detailed explanation-1: -Legal tender is something which is acknowledged by the laws as a mechanism to settle a private or public debt or in order to meet a fiscal responsibility which includes paying taxes, abiding by contracts, and finally damages or fines. Almost every country uses its national currency as legal tender.
Detailed explanation-2: -Legal Tender: Legal tender refers to the money which can be legally used to make payments of debts or other obligations. Fiat money: Fiat money refers to the money which is backed with the order of the government under law. It must be accepted for all debts.
Detailed explanation-3: -What is legal tender? Legal Tender is a coin or a banknote that is legally tenderable for discharge of debt or obligation.
Detailed explanation-4: -Section 31 U.S.C. 5103, entitled “Legal tender, ” states: “United States coins and currency [including Federal Reserve notes and circulating notes of Federal Reserve Banks and national banks] are legal tender for all debts, public charges, taxes, and dues."
Detailed explanation-5: -The correct answer is The money which a creditor is under compulsion to accept in settlement of his claims. Legal tender is defined as “any official medium of payment recognized by law, that can extinguish public or private debt, or meet a financial obligation.”