ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Durable
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Acceptable
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Divisible
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Scarce
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Detailed explanation-1: -Its value comes from being declared “legal tender"-an acceptable form of payment-by the government of the issuing country. In this case, we accept the value of the money because the government says it has value and other people value it enough to accept it as payment.
Detailed explanation-2: -Crowther defines money as ‘anything that is generally acceptable as a means of exchange and at the same time acts as measure and store of value. ‘
Detailed explanation-3: -Money is accepted as a medium of exchange because: (i)The currency is authorised by the government of the country. (ii)The Reserve Bank of India issues currency notes on behalf of the Central Government. As per Indian law, no other individual or organisation is allowed to issue currency.
Detailed explanation-4: -Money is defined as a unit of measure that is generally accepted and recognized as a medium of exchange in the economy. For a commodity or currency to be recognized as money, it must be fungible, stable, recognizable, portable, and durable.