Question

‘Modem currency is without any use of its own’; then why is it accepted as a medium of exchange?(All India - 2014)

Answer 1

Answer:

because government orders that payment made in modern currency can not be denied

Answer 2

Modern currency is accepted as a medium of exchange because it is authorized by the central government of a country. 2. In India, RBI issues the currency notes and it is illegal for any other organization or individual to issue the currency.