Definition of Money - SS1 Economics Past Questions & Answers - page 1

1

What does it mean for currency to be considered legal tender?

A

 It is a type of digital currency

B

It is recognized by law as an acceptable means of payment for debts and taxes

 

C

It is a type of currency used only in certain countries

CORRECT OPTION: b
2

Which of the following is an example of legal tender in the United States?

A

Bitcoin

 

B

Credit card

C

U.S. dollar bills

CORRECT OPTION: c
3

Legal tender laws vary by:

A

Type of currency

 

B

Country

 

C

Both a and b

CORRECT OPTION: c
4

What is money?

 

Money is any object or record that facilitates transactions between buyers and sellers. 

5

What is the definition of legal tender?

When a currency is considered "legal tender," it means that it is recognized by law as an acceptable means of payment for debts and taxes.

 

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