ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Currency is the physical money in an economy, comprising the coins and paper notes in circulation. Currency makes up just a small amount of the overall money supply, much of which exists as credit money or electronic entries in financial ledgers.

Detailed explanation-2: -Currency is the coin, note, object, etc. that is presented in the form of money. The basic form of money is numbers; currently, the basic form of currency is paper notes, coins, or plastic cards (e.g., credit or debit cards).

Detailed explanation-3: -Fiat money. Standard money consisting of paper currency notes and coins is called fiat money. No one can refuse to accept this money.

Detailed explanation-4: -Before money was invented, people bartered for goods and services. It wasn’t until about 5, 000 years ago that the Mesopotamian people created the shekel, which is considered the first known form of currency. Gold and silver coins date back to around 650 to 600 B.C. when stamped coins were used to pay armies.

Detailed explanation-5: -A banknote-also called a bill (North American English), paper money, or simply a note-is a type of negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand.