Question

why money is accepted as medium of exchange?


Any 5 points please



Caution : from the examination point of view ​

Answer 1

Answer:

(i) It is accepted as a medium of exchange because the currency is authorised by the government of the country.

(ii) In India, the Reserve Bank of India issues currency notes on behalf of the Central Government. Hence this rupee is widely accepted as a medium of exchange.

Answer 2

Answer:

1.Money is the medium of exchange used for exchanging goods, commodities or properties.

2.Before money, barter system was present in the society.

3.The currency is authorized for exchange by the government of the country.

4.In India, the Reserve Bank of India authorizes currency notes and it's illegal for anyone else to issue notes.

5.No individual can legally refuse payment in rupees so it is used as a medium of exchange