Legal tender

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/legal-tender

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. Who wrote Legal tender?Defined by specific statutes and laws within each country or legal system
2. What is legal tender?Legal tender is money that courts say you must use to pay debts. It must be accepted by creditors to settle a debt.
3. Why do we need legal tender?Legal tender gives trust and certainty in money. It helps keep the economy stable and reduces arguments over payments.

Fiat Currency: Money that is not backed by a physical commodity but by government decree.
Creditor: A person or entity to whom a debt is owed.
Debtor: A person or entity that owes a debt.
Monetary Policy: Actions undertaken by a central bank to manipulate the money supply and credit conditions.