Legal Tender

Legal tender is the national currency of a nation. It prohibits the use of any other currency. Legal tender must be accepted by creditors as payment for debt. Only government institutions such as the U.S. Treasury in the United States and the Royal Canadian Mint in Canada can issue legal tender. Specifically, in the United States, Federal Reserve notes and coins are legal tender and marked as such. Some currencies, such as the U.S. Dollar and Euro, can be used as legal tender in other countries.

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