Question

why is the rupee widely accepted as a medium of exchange in India​

Answer 1

Answer:

Rupee is widely accepted as a medium of exchange in India due to the following reasons :

⚫ 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.

⚫ Moreover, the law legalises the use of rupee as a medium of payment that cannot be refused in settling transaction in India.

⚫No individual in India can legally refuse a payment made in rupees.

________❤️ ______

Answer 2

The rupee is accepted in India in exchange for goods and services because:

• The government of India has authorized it as an Indian currency.

• As per the laws, the rupee is used as a medium to make the payment in exchange for services that cannot be refused during the transaction in a country.