Definition of Money - SS1 Economics Past Questions and 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
Users' Answers & Comments2
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
Users' Answers & Comments3
Legal tender laws vary by:
A
Type of currency
B
Country
C
Both a and b
correct option: c
Users' Answers & Comments4
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.