Legal tender refers to money that must be accepted if offered in payment of a debt. In most countries, this includes coins and banknotes issued by the government or central bank. The purpose of legal tender is to provide a standard medium of exchange that facilitates trade and economic transactions. In the United States, for example, U.S. dollars are considered legal tender. This means that businesses and individuals are required to accept them for settling debts. However, private entities can choose to accept other forms of payment, such as credit cards or checks, but they are not obligated to do so.