Legal Definitions - United States currency

United States currency refers to the official money issued by the U.S. government, which includes all banknotes (paper money) and coins designated as legal tender. This means it is recognized by law as a valid medium of exchange for financial transactions and must be accepted for all public and private debts within the United States.

Here are some examples illustrating United States currency:

• Retail Transaction: A customer purchases a new book at a bookstore and pays with a ten-dollar bill and a five-dollar bill. The cashier accepts these without question.

  Explanation: The ten-dollar bill and five-dollar bill are examples of United States currency, specifically banknotes, which are legal tender and must be accepted for the payment of goods or services.

• Debt Repayment: A person repays a small loan to a friend by handing them a stack of twenty-dollar bills, totaling the agreed-upon amount.

  Explanation: The twenty-dollar bills used to repay the loan constitute United States currency. As legal tender, they are a valid and recognized form of payment for settling a debt.

• Government Fine: A driver receives a parking ticket with a fine of $75. They pay the fine online using a credit card, which processes the payment in U.S. dollars, or by mailing a check for $75 drawn on a U.S. bank.

  Explanation: Whether paid directly with physical cash, or through a digital transaction or check denominated in U.S. dollars, the fine is settled using United States currency, which is the required medium for payments to government entities.