Notes and coins are legal tender because they are

Assessment: WAEC SSCE - Commerce - 1999 (Objective) Subject: Commerce

Question 1 Report

Notes and coins are legal tender because they are
Answer Details
Notes and coins are legal tender because they are backed by law. Legal tender is a form of payment that is recognized by law and must be accepted as payment for debts and other financial obligations. Notes and coins are issued by the central bank and have a legal status as a means of payment. This means that individuals and businesses are required by law to accept notes and coins as payment for goods and services. However, legal tender status does not mean that notes and coins are backed by gold or issued by all banks.
Read lesson note on Commerce (JAMB)
Read lesson note on Finance And Financial Institutions (WAEC)
Read lesson note on Money (JAMB)
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