Question

Which institution in India does authorize, money as a medium of exchange?

Answer 1

Answer

RBI (Reserve Bank of India) authorize money in India, as a medium of exchange.

Money

Money is a particular type of asset in an economy that people use to buy goods and services from other people or businesses. A medium of exchange is something that buyers will exchange with a seller when they want to purchase goods or services from the seller. While many things could be used as a medium of exchange in an economy, money is the most common and useful medium of exchange in our society.

Role of RBI

• The central bank issues and regulates currency notes.
• It keeps reserves with a view to securing monetary stability and is called banker to banks.
• It regulates and supervise banks and other financial institutions.
• The RBI plays a vital role in economic growth of the country and maintaining price stability.