Mention the modern forms of money. How is it different from traditional form of money?
Answers
Answer:
The modern forms of money includes coins and currencies. Apart from this, large amount of money is saved in demand deposits and cheques.
On the other hand, the traditional form of money included Gold & Silver coins, that were issued by different rulers, showing their artwork or portrait in each coin.
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Answer:
Traditional form of money consist of gold, copper coins, grains,etc which were not authorised by any external and universal authority. but,Whereas, modern money are in the form of currencyie notes and coins which are authorised by an external authority( RBI) and nobody can refuse this money in a country.
1. Currency-paper notes and coins. They are not made of precious things and are not of daily use. They are accepted as a form of money because of government authorization.
2. Bank deposits are also a form of money. People can open bank accounts and make demand deposits.
3. Cheques act as a medium of exchange possible through bank accounts. It's a paper that makes the bank transfer money from one person's account to another. 'Rupee' is accepted as a medium of exchange because: