Question

the modern forms of money include ___________and___________? explain it?​

Answer 1

paper notes and coins

theses are authorized by central govt and issued by rbi on behalf of the central govt

Answer 2

The modern forms of money include paper notes and coins.

Explanation:

• Most common forms of money found universally in modern times include paper money and coins.
• Coins are often referred to as metallic money which is made of different metallic items such as gold,silver,bronze,copper etc. and has face value and commodity value.Face value of the coin is denoted by the amount or coin denomination inscribed in it such as Rs.10,Rs.5,Rs.2,Re.1 etc.The commodity value of the coin represents the intrinsic value of the coin or the amount of money or wealth used to manufacture the respective coins.
• Paper money or notes basically implies paper currency notes that are issued by the central bank of any country and are made of papers,as opposed to metallic money or coin.Hence,the commodity value of paper money depends on the amount of paper used in its manufacturing.
• The manufacturing cost of paper money is usually cheaper than the metallic money or coin.Paper currency is one of the major instruments of the monetary or financial policies undertaken by the central bank as it relatively easier to issue or control the paper notes compared to metallic coins,considering the cost of money supply and other practical expenses.Paper currency is also easily portable compared to metallic money or coins.