OddThoughts

What does this mean?

A Note: -> a “promise or certificate” that an amount will be paid to you. as apposed to a Draft (ie: cheque), which is an order that an amount be paid to you.

So the “idea” is this. Orginally if someone did a “service” for you, or provided you with a “product”. Then you would be in debt to them.

The barter system is the exchanging of one form of goods/services for another. Later things like gold and silver were traded for goods and services (to pay of this debt).

Legal Tender is the “forced requirement” for a person to accept the bank note (cash bills) as payment for debt.

So if you go to the store, and purhase groceries totalling $50.00, the grocery carrier has to accept your cash as payment for the goods. (They are not required to accept cheques, credit cards, debit cards), but they must accept cash. The currency of the nation as defined as “legal tender”.

(it’s double quote day “” for everything)

Reference:

What is a negotiable cheque? 

A lesson in economics

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