ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because the currency is authorised by the government of the country.
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Because it is liked by the people who use it.
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Because the use of currency has its origin in ancient times
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Because the currency is authorised by the World Bank.
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Detailed explanation-1: -It is accepted as a medium of exchange because the currency is authorized by the Government of India. 2. In India, the Reserve bank of India issues currency notes on behalf of the Central Government of India.
Detailed explanation-2: -1. Modern currency is accepted as a medium of exchange because it is authorized by the central government of a country. 2. In India, RBI issues the currency notes and it is illegal for any other organization or individual to issue the currency.
Detailed explanation-3: -Why is currency accepted as a medium of exchange? (a) Because the currency is authorised by the government of the country.
Detailed explanation-4: -In modern economies, the medium of exchange is currency. Gold has served as a medium of exchange throughout history.
Detailed explanation-5: -Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money. Wholesalers, in turn, sell their goods to the retailers and the retailers sell these goods to the consumers in exchange for money.