DECA Financial Consulting Complete Practice Exam

Bank notes are recognized as legal tender issued by the federal government. This means they are an official form of currency that must be accepted for the payment of debts. In the United States, bank notes typically refer to the paper money produced by the U.S. Department of the Treasury and the Federal Reserve. This form of currency is backed by the government, ensuring its acceptance across the country for transactions.

In contrast, gold certificates, while once used to represent a claim to gold bullion, are no longer circulated as legal tender. Private currency is not considered legal tender since it is issued by private entities and does not have the government’s backing or official status. Lastly, companies' stock certificates represent ownership in a company and do not serve as a medium for transaction within the economy; thus, they are not classified as legal tender either. This distinction underscores the importance of bank notes as the primary form of government-issued currency used in daily commerce.