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Simple English definitions for legal terms
national currency
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A quick definition of national currency:
A national currency is the money that a country uses as a medium of exchange. It can be in the form of coins, banknotes, or government notes. It is approved by the government and is used within the country as legal tender. Some currencies are backed by reserves such as gold and silver, while others are not and can fluctuate in value. Fractional currency is paper money worth less than one dollar, while hard currency is backed by reserves. Blocked currency can only be used within the country where it is located.
A more thorough explanation:
Definition: National currency is a type of currency that is approved by a national government and used as a medium of exchange within that country. It can be in the form of coins, government notes, or banknotes.
- United States currency
- British pound sterling
- Japanese yen
These examples illustrate national currencies because they are all approved by their respective national governments and are used as a medium of exchange within their countries. For example, the United States currency is approved by the federal government and is used to buy goods and services within the United States.
National currencies are also considered legal tender, which means they are recognized by law as a valid form of payment for debts and taxes. This makes them an important part of a country's economy and financial system.
National Credit Union Administration | National Daily Quotation Service