of Congress was the same. The intent of Congress was that government issued or authorized circulating mediums be legal tender. By so declaring, Congress established the federal government's "power of the purse." The legal tender quality of money distinguishes it from other forms of money, and this difference, and its importance in our monetary history, should be recognized.
Today, a growing portion of our population is using legal tender because they cannot afford basic banking services. The elderly and or poor make extensive use of cash for their transactions. Because of the political power of these groups, selected basic banking services have been codified by some states. In addition, an increasing number of banks are offering basic banking on their own initiative. The use of cash transactions in the underground economy, offshore, and for illegal purposes may also be important, but little is known about these activities. Although the use of cash for transactions is on the rise, many business concerns refuse to accept large denomination legal tender for transactions. Thus, some forms of legal tender currency lack liquidity.
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Publication information: Book title: Marketing Exchange Relationships, Transactions, and Their Media. Contributors: Franklin S. Houston - Editor. Publisher: Quorum Books. Place of publication: Westport, CT. Publication year: 1994. Page number: 245.
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