2oii0r2017 Money Money Whats ‘Money! Money isan ofciallssued legal tender generally consisting ofnotes and eon, andthe creulatng ‘medium of exchange a8 defined by government Moneys often synonymous wit cash and includes various negotiable instruments such as checks, Each country has its own money tatis used as a medhum of exchange within that country BREAKING DOWN ‘Money! ‘so referred to as currency, money aliquid asset used inthe settlement of debs that functions based on the general acceptance ofits associated value within an economy. The value of money is not necessarily derived from the materials used to produce thenote or coin and instead, derives based on the amount shown on is face partnered with the public's wilingnes to support the value asdispayed Trading Center Foreign Currency and Exchange Rates ‘Some countries share a type of currency, such as the euro used by the European Union. The currency of one country can be exchanged for the currency of another via a currency exchange. The current ‘xchange ate dtermineshow much of ne currency must be used to purchase a specified amount | ‘ofthe other currency. For example, on July 12, 2016, the exchange rate between the euro and the US dollar was 1.10635, where 1 euro bought 1.10635 US dollars. Legal Tender Legal tenderisa type of payment that can awfully be used to meet financial obligations. Money, as, Lega tender isa commodity or asset, or an fficially-issued currency or coin that canbe legally ‘exchanged for something of equal value, such a a good or service or that can be sed in payment of a debt Currency may include notice ofthe legal tender status. nthe United States, for example, the paper money includes the affirmation that this note ileal tender for all debts, public and private; in Australia, the notes include the afrmatin that this Australian notes egal tender throughout ‘Australia ands territories. Exclusions from the Money Classification Not all methods that can be used to settle a debt are considered money. For example, a creditcard is not considered money ast serves asa method of transferring a debt owed from one party to ‘another. When a person usesa creditcard to purchase tems froma rtaler, the debt associated with the retalleris paid by assuming adebt that will be owed to the credit card issuer. Legal Tender Acceptance for Transactions Wiile US. currency is considered legal tender forthe settlement of debs, individuals and business havea right to permit only certain forms of payment by debtors a limited by applicable state and federal law. Ths allows an establishment to refuse to accept bills larger than $20 or the right to ae “through the use of only pennies. hitp:Jwwwinvestopedia.comftermsimimoney.asp 122oii0r2017 Money ‘and use six proitiable, tried-and-true trading techniques, Watch Free Traller>> Hedged Tender ‘strategy Ina tender offer where an investor shor sells a portion ofthe shares he or she owns. This strategy is used to protect against the risk ofossin the event tha the tender offer does nat go through. BREAKING DOWN 'Hedged Tender’ For example, imagine a stock was trading at $30, and there was a tender offer fr $40 per share. A hedged tender would attempt to lockin the $40 per share even if the offer does not go through, Seven nope 22017 Ivesmpeda LC. leg hitp:wwoinvestopedia.comtermsimimaney.asp 22