What is Legal Tender?

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Accepted Answer

Legal tender is the official medium of payment, recognized by a country's government, that creditors are legally obligated to accept for the settlement of all public and private debts. This designation grants a currency its ultimate authority and enforceability within a jurisdiction, distinguishing it from other forms of money or payment instruments.

Legal Tender

What is Legal Tender?

What is Legal Tender and how does it differ from other forms of money in the global financial system?

How do Legal Tender laws impact a country's monetary policy and the stability of its domestic currency?

Why are the historical "Legal Tender Cases" in the United States significant for modern fiat currency systems?

When does a currency's status as Legal Tender become relevant in foreign exchange (FX) markets and international trade?

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