ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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something accepted by all parties as payment for goods and services
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money in the form of coins made from silver or gold
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a common denominator that can be used to express worth in terms that most individuals understand
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money by government decree
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Detailed explanation-1: -Currency is the most common medium of exchange accepted as a standard by all parties for settling economic transactions. In modern economies, currency as a medium of exchange has made economic dynamics possible.
Detailed explanation-2: -Currency is a medium for exchange of goods and services.
Detailed explanation-3: -Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.
Detailed explanation-4: -Most forms of money are categorised as mediums of exchange, including commodity money, representative money, cryptocurrency, and most commonly fiat money. Representative and fiat money most widely exist in digital form as well as physical tokens, for example coins and notes.