Question

What are the modren form of money why is rupees widely accepted as medium of exchange?

Answer 1

Answer:

The modern form of Money is mainly coins and paper notes. Rupees is widely accepted as medium of exchange because of the following reasons:

i) It is the only currency legally accepted by the government of India for transactions made in india.

ii) It is declared as the official currency by law and the right to print notes and produce coins is given only to Reserve Bank of India(RBI). No one else can personally print money.

iii) You can buy any desired goods or items of purchase with the rupees anywhere or in any region of India. No shopkeeper can deny accepting the rupee.