Definition of Legal tender:
Legal tender is any thing recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward repayment of a debt. Legal tender is established by a statute which specifies the thing to be used as legal tender and the institution that is authorized to produce and issue it to the public, such as the U.S. Treasury in the United States and the Royal Canadian Mint in Canada.
In the United States, the recognized legal tender consists of Federal Reserve notes and coins. Creditors are required to accept them as payment offered to discharge a debt, however, except where prohibited by state law, private businesses may refuse to accept some or all forms of cash tender provided that a transaction has not already occurred and a debt has not been incurred by the customer.
Denomination of a countrys currency that, by law, must be accepted as a medium for commercial exchange and payment for a money debt. While usually all denominations of the circulating paper money are legal tenders, the denomination and amount in coins acceptable as legal tender varies from country to country. Checks and postal orders are not legal tenders and are accepted only at the option of the creditor, lender, or seller. Also called lawful money.
Coins or banknotes that must be accepted if offered in payment of a debt.
Synonyms of Legal tender
And pence, Cash, Circulating medium, Coinage, Coined liberty, Cold cash, Currency, Dollars, Emergency money, Filthy lucre, Fractional currency, Gold, Hard cash, Hard currency, Lucre, Mammon, Managed currency, Medium of exchange, Mintage, Money, Necessity money, Pelf, Postage currency, Postal currency, Pounds, Scrip, Shillings, Silver, Soft currency, Specie, Sterling, The almighty dollar, The wherewith, The wherewithal, Cash, Hard cash, Ready money
How to use Legal tender in a sentence?
- Legal tender is the legally recognized money within a given political jurisdiction.
- Its bank notes, which functioned much like todays paper currency, acted as legal tender in payment of U.S. debts.
- I explained to him that the legal tender was inescapable and had to be honored, which made the man really angry and upset with me.
- Although the United States government no longer prints some types of money, such as silver dollars, they are still legal tender and can be spent at any store.
- Legal tender serves the economic functions of money plus a few additional functions, such as making monetary policy and currency manipulation possible.
- The legal tender was able to be exchanged for goods and services in the region so we took advantage of its acceptance.
- Legal tender laws effectively prevent the use of anything other than the existing legal tender as money in the economy. .
Meaning of Legal tender & Legal tender Definition