Question

define money why it is accepted as medium of exchange

Answer 1

Money is something (such as coins or bills) used as a way to pay for goods and services and to pay people for their work.

It is accepted as a medium of exchange because:-

(i) the currency is authorised by the government of the country.

(ii) In India, the Reserve Bank of India issues currency notes on behalf of the Central Government.

Hence, this rupee is widely accepted as a medium of exchange.

Hope it helps:)

Answer 2

Money is anything which can be commonly accepted as medium of exchange. Money performs following functions :-
1. transfer of value
2.store of value.
3.measurable.
4.help in deferred payments
5.no need of double coincidence of wants
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