ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment.

Detailed explanation-2: -Commerce is an exchange between two parties of goods or services for money.

Detailed explanation-3: -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-4: -A medium of exchange is a portable instrument that is used as an intermediary to facilitate the sale and purchase of goods between parties. In modern economies, the medium of exchange is currency.

Detailed explanation-5: -Cash (bills and change): Cash is one of the most common ways to pay for purchases. Personal Cheque (US check): These are ordered through the buyer’s account. Debit Card: Paying with a debit card takes the money directly out of the buyer’s account. Credit Card: Credit cards look like debit cards.