ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is made from precious metal
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It is made from thing of everyday use
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It is authorized by commercial banks
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It is authorized by the Government of the country
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Detailed explanation-1: -Option D) It is authorized by the government of the country is the important characteristic of a modern form of currency.
Detailed explanation-2: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
Detailed explanation-3: -Detailed Solution The modern forms of money are Metallic Money, Paper Money, and Credit Money.
Detailed explanation-4: -Stability. Of all the qualities of good money, stability is probably the most essential one. The value of money cannot change for a long period of time and hence remain stable. If the value of money keeps changing, then it will fail to function as a measure of value and as a standard of deferred payment.
Detailed explanation-5: -Modern forms of money include currency-paper notes and coins. Currency is accepted as a medium of exchange as it is authorised by the government of the country. In India, the Reserve Bank of India issues currency notes on behalf of the central government.