ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is a medium of exchange that can be used to facilitate transactions for goods and services. Currency is a generally accepted form of payment, including coins and paper notes, which is circulated within an economy and usually issued by a government.

Detailed explanation-2: -Currency is a medium for exchange of goods and services.

Detailed explanation-3: -Bartering is the exchange of goods and services between two or more parties without the use of money. It is the oldest form of commerce.

Detailed explanation-4: -Currency and money are mediums of exchange. They are necessary for an economy for efficient trading and boosting the activities related to trade and exchange. Significantly, they have purchasing power, stored value, and common terminology and act as a standard unit measurement.

Detailed explanation-5: -The most common and generally accepted medium of exchange in the modern economy is money – represented as currency. A medium of exchange should have a consistent intrinsic value, be interchangeable, transportable, and reliable.