Robertson has called legal tender money as common money and optional money as bank money in the advanced economies, particularly credit money constitutes the major port of the money stock in the hands of the public. Titled the wyoming legal tender act, the new law defines gold and silver specie as legal tender, meaning it will be recognized as a medium of exchange for the payment of debts and taxes in the state practically speaking, gold and silver specie will be treated as money, putting it on par with federal reserve notes in the state. Titled the wyoming legal tender act, the new law defines gold and silver specie as legal tender, meaning it will be recognized as a medium of exchange for the payment of debts and taxes in the.
Legal tender has a very narrow technical meaning in relation to the settlement of debt if a debtor pays in legal tender the exact amount he owes under the terms of a contract, he has good defence in law if he is subsequently sued for non-payment of the debt. I thought that united states currency was legal tender for all debts some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Dear seenu, fiat money derives its value only because of government order (fiat)the currency becomes fiat money when the government declares it to be the legal tender this money does not have intrinsic value, ie the real value is not equivalent to the face value printed on the notes and coins whereas fiduciary money refers to the non-legal tender money which is generally accepted as money.
Real money vs phony money (lawful money vs legal tender do you know the difference) - duration: 10:34 deprogramedenlightener 2,666 views 10:34. Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation paper currency and coins are common forms of legal tender in many countries. Legal tender optional money money is different not only on the basis of the relationship between its monetary usage and commodity usage but also from the standpoint of the law. Legal tender is any currency declared legal by a government many governments issue a fiat currency and then make it legal tender by setting it as the standard for repaying debt.
For example, ecuador adopted the us dollar as legal tender in 2000 after the ecuadorian-issued currency, the sucre, depreciated rapidly such that $1 was worth 25,000 sucres. The complete description about three different kinds of money find out what is legal tender money and what is optional money the complete description about three. Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation paper currency is a common form of legal tender in many countries. Thus, the term lawful money had a broader meaning than the term legal tender in 1933, congress changed the law so that all us coins and currency (including federal reserve notes), regardless of when issued, constitutes legal tender for all purposes. Legal tender money is a type of payment that is protected by law a legal tender, also known as the forced tender, is very secured and it is impossible to deny the legal tender while subsiding a debt which is assigned in the same medium of exchange.
One effect of the legal tender law is that it allows debts and obligations to be discharged in a cheaper form of dollars than coins made of gold and silver. Denomination of a country's currency that, by law, must be accepted as a medium for commercial exchange and payment for a money debtwhile 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. Optional money is the non legal tender money, but it is generally acceptable by the people in it's final paymentsoptional money consists of credit instruments like bills of exchange , cheques.
Lawful money vs legal tender do you know the difference. Explanation of lawful money versus legal tender --- management of personal accounts we have the choice to use either lawful money or government script----- at least in. A united states note, also known as a legal tender note, is a type of paper money that was issued from 1862 to 1971 in the us having been current for more than 100 years, they were issued for longer than any other form of us paper money. Legal tender definition is - money that is legally valid for the payment of debts and that must be accepted for that purpose when offered how to use legal tender in a sentence money that is legally valid for the payment of debts and that must be accepted for that purpose when offered.
Basically you can spend scottish & irish money anywhere in the uk as it is a legal tender denominated and backed by sterling the currency the bank of england notes are issued in. A slip of paper issued by the us government, used as money, and backed by a legal tender law legal tender law a law which provides for the punishment of anyone who refuses to accept the legal tender money. The legal currency in panama is the balboa, which is equivalent to the us dollar in practice, panama has its own coins which are very similar to us coins but paper money is us dollars us coins are also widely used in panama.
Nevertheless, although the power to coin money has not sufficed to support the right to make these treasury notes a legal tender, the power to 'regulate the value thereof,' that is, of coined money, has been taken as one of the most effective arguments to support this law. Best answer: legal tender is what the law requires a creditor to accept as payment for a debt legal currency is what ever the government issues as 'money' note: creditors can accept payment in forms that are not legal tender, but they are not required to do so. Over the period of time, this money evolved in five stages : 1) commodity money 2) metallic money 3) paper money & legal tender 4)bank money 5) crypto currency first we take a look at commodity money: examples, advantages, limitations and how the problem of uniformity and purity of gold nuggets leads to invention of metallic coin money.