Question

What are the modern forms of money? Why are they accepted as a medium of exchange?

Answer 1

Answer:

Modern forms of money include currency (paper notes) and coins. It is accepted as a medium of exchange because the currency is authorised by the government of India. ... Any person holding money can easily exchange it with any commodity or service that he desires.

Explanation:

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Answer 2

QUESTION :

What are the modern forms of money ?

Answer:

MORDERN FORM OF MONEY ARE

• Currency-paper notes and coins. They are not made of precious things and are not of daily use.
• Bank deposits are also a form of money. People can open bank accounts and make demand deposits.
• Cheques act as a medium of exchange possible through bank accounts.

QUESTION :

Why are they accepted as a medium of exchange?

ANSWER :

Money is the medium of exchange used for exchanging goods, commodities or properties. Before money, barter system was present in the society, Modern money currency is accepted as a medium of exchange because:

• The currency is authorized for exchange by the government of the country.
•  In India, the Reserve Bank of India authorizes currency notes and it's illegal for anyone else to issue notes.
• No individual can legally refuse payment in rupees so it is used as a medium of exchange.

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