A bank note is said to be a legal tender because it is
ECONOMICS
WAEC 2016
A bank note is said to be a legal tender because it is
- A. printed by government
- B. a store of value
- C. signed by the head of state
- D. backed by law
Correct Answer: D. backed by law
Explanation
National banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation.
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