Why does the money is considered medium of exchange even when it is of no use of its own?
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- it is considered as a medium of exchange because it is accepted by the government of the country.
- in India, the Reserve Bank of India issues currency notes on behalf of the central government.
- as per Indian law, no other individual or organisation is allowed to issue currency.
- the law legalises the use of Rupee as a medium of exchange that cannot be refused in settling any transactions in India.
- no individual in India can legally refuse a payment made in Rupee.
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