Which of the following statements is true?
Multiple choice question.
General acceptance of paper currency is equally as important as the government's decree that money is legal tender.
Private firms and government are mandated to accept cash.
General acceptance of paper currency is more important than the government's decree that money is legal tender.
The government's decree that money is legal tender is more important than the general acceptance of paper currency.
1 answer
The correct statement is:
General acceptance of paper currency is more important than the government's decree that money is legal tender.
While the government's decree that a currency is legal tender is important, the actual acceptance and use of that currency by the public and businesses are crucial for it to function effectively as money. If a currency is not widely accepted, it cannot serve its purpose as a medium of exchange, regardless of its legal status.
