Final answer:
Legal tender is defined by a government and must be accepted as payment for debts within that country. While historically, items like shells or stones may have been used, today's legal tender is typically fiat money, like paper currency, backed by government mandate and public trust. Therefore, the correct option is C
Step-by-step explanation:
If a nation agreed to trade with something other than money, like shells or certain stones, it would not be considered legal tender unless it is declared by the government. Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation. Historically, various objects such as cowry shells or precious metals were used as money, and they functioned as a medium of exchange within societies.
Fiat money, like the paper currency used today, is declared by a government to be legal tender and is backed not by a physical commodity but by the faith and trust that people have in the currency's value. In the United States, for instance, paper money carries a statement that it is legal tender for all debts, public and private, which is supported by government decree.
Therefore, answer C is correct - Yes, if everyone was required to accept it, implying a government mandate has made such an object legal tender in the country.