define money why is it accepted as a medium of exchange
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money is accepted as medium of exchange because it is issued by government of any country.
In India RBI issued the currency on the behalf of central government.
In India RBI issued the currency on the behalf of central government.
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money is an asset in our economy, which people use to buy goods from seller.
medium of exchange is anything that is use buy buyer to exchange goods form seller.
many things can be used as medium of exchange, money is used as medium of exchange because it is useful, trustful.
Function of money:-
1) money is an asset that serves many key functions in our economy like it is a unit of money, store of value, and medium of exchange.
2) it also facilitate trade because people know it valuable, traders are willing to trade money in exchange of goods and services. keeping the intention that the money they collect as sellers one day they will use this to buy goods and services form others.
money is further divided to sub group:-
1) commodative money.
2) fait money.
medium of exchange is anything that is use buy buyer to exchange goods form seller.
many things can be used as medium of exchange, money is used as medium of exchange because it is useful, trustful.
Function of money:-
1) money is an asset that serves many key functions in our economy like it is a unit of money, store of value, and medium of exchange.
2) it also facilitate trade because people know it valuable, traders are willing to trade money in exchange of goods and services. keeping the intention that the money they collect as sellers one day they will use this to buy goods and services form others.
money is further divided to sub group:-
1) commodative money.
2) fait money.
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