ELI5: legal tender
// explanation
What is legal tender?
Legal tender is money that the government says you can use to pay for things and pay back debts [2]. It's like when your parents say "you can use these coins to buy candy" - those coins become official payment [3].
Why do we need it?
Without legal tender, people might argue about what counts as "real money" [2]. Legal tender settles that argument by making certain coins and bills the official way to pay [4].
What counts as legal tender?
In the United States, all government coins and paper dollars (called Federal Reserve notes) are legal tender [3][4]. This includes quarters, dimes, and dollar bills.
Can you be forced to accept it?
Courts say that legal tender must be accepted as payment for any debt [2]. So if someone owes you money, they can pay with legal tender and that's final.
// sources
New Mexico's Famous Historic Landmark, the Legal Tender Saloon & Eating House is open for delightful camaraderie, drinking, dining and your next very special ...
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment in court for any monetary debt.
Legal tender refers to all US coins and currency that issued by the government. US Cash dollars are also a valid form of legal tender.
Legal tender. United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal ...
This bill recognizes gold and silver coins that are issued by the federal government as 10 legal tender in the state and exempts the exchange of the coins.
Video by The Right Politics
Video by Stories of the States
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