Question

why money is accepted as a medium of exchange

Answer 1

1. Money is used as medium of exchange because it is certified by the government of India.
2. The RBI issue currency on behalf of central government.
3. No one can legally refuse to accept money as a medium of exchange in India

Answer 2

Because before advert of money barter system was in usein barter system the exchange was to commodity to commodity means we have to exchange goods with each other but in there was a problem that all time the needs of the buyer and seller was not completed so there the use of money was started now the currencies established by RBI in India it is a Central Bank of India which has only right to issue the currency which is rupiya