What is Legal Tender
Legal tender is a medium of payments and is recognised by law to remove public or private debts. In every country the national currency is also infant legal tender which consists of currency and coin. To pay off a debt a creditor is obliged to accept legal tender as a form of payment.Lastly, legal Tender must be issued by the national body that is approved to do as such such as the Royal mail for the UK.
What is money?
Legal tender generally consists of currency and coin. Each country has it's own particular currency which is used as a avenue of exchange within that country. However some countries share the same currency such as the euro and the dollar. Currency can also be exchanged for another currency by using currency exchange. If wanting to exchange money via a currency exchange the exchange rate off a currency can effect the amount received once exchanged to that particular currency for example if you would exchange one British pound with one Dollar the user would receive 1.44 dollar for every pound. These figures rise and full with inflation. Inflation is a increase in the general price of goods and services in an economy and when the price level rises, currency ends up buying fewer goods and services which effects the currency of that particular country.
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