Legal Tender (Noun)
Meaning
Something that can be used as an official medium of payment.
Classification
Nouns denoting possession and transfer of possession.
Examples
- Most countries consider their domestic currency as legal tender for all financial transactions within their territories.
- United States coins and currency are the only type of legal tender that financial institutions are required by law to accept.
- In many countries, foreign currencies are widely accepted as a medium of exchange, but they are not considered a legal tender.
- The merchant does not have to accept personal checks as a method of payment, and technically, there is no law requiring them to take anything other than cash as a legal tender.
- In Singapore the Monetary Authority in 1977 introduced this $10,000 banknote and the bank's $10,000 currency was formally designated a legal tender in Singapore until May 2014.