Question

Why are transaction made in money ? Explain with suitable examples

Answer 1

Transactions mean withdrawing as well as depositing money from your account or any situation where u deal with money. The word transaction is only used with money and its meaning directly refers to dealing with money. So transaction are made in money. e.g Taking out money from ur ATM also comes under transaction

Answer 2

Answer:

Explanation:

Everyone prefers to receive payments in money and then exchange the money for things they want. For example, take the case of a blacksmith. He wants to sell tools in the market and buy rice. The blacksmith will first exchange tools that he has produced for money and then exchange the money for rice.

The transactions are made in money because a person holding money can easily exchange it for any commodity or service that he or she wants.