ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The modern forms of money include all forms of currency, such as notes, coins, and demand deposits . Shells, however, were used as intermediatory goods in ancient times. They are no longer in conventional use.

Detailed explanation-2: -Detailed Solution The modern forms of money are Metallic Money, Paper Money, and Credit Money.

Detailed explanation-3: -However, loan payments are not a form of currency.

Detailed explanation-4: -Modern forms of money currency in India are paper notes and coins. It is accepted as a medium of exchange because currency is authorised by the government of the country. Reserve Bank of India issues currency notes on behalf of the central government. No other organisation or individual can issue currency.

Detailed explanation-5: -The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash. Since demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.