ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money in the form of paper or coins, issued by a government and accepted at face value, is known as currency. In bartering, goods and services were exchanged directly for other goods and services . Currency has replaced bartering as the primary means of exchanging goods and services in the modern world.

Detailed explanation-2: -Paper money is a country’s official, paper currency that is circulated for the transactions involved in acquiring goods and services. The printing of paper money is typically regulated by a country’s central bank or treasury in order to keep the flow of funds in line with monetary policy.

Detailed explanation-3: -Fiat money is backed by a country’s government instead of a physical commodity or financial instrument. This means most coin and paper currencies that are used throughout the world are fiat money.

Detailed explanation-4: -Currency is anything that is generally accepted to have value as a medium of exchange so that it can be traded for goods and services. The trading system within an economy is based on its currency, which is usually specific to a country and issued by that country’s government.

Detailed explanation-5: -Currency is the physical paper notes and coins in circulation. By accepting the currency, a merchant can sell his or her goods and have a convenient way to pay their trading partners. There are other important benefits of currency too.