ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The terms money and currency are often thought to mean the same thing. However, while related, they have different meanings. Money is a broader term that refers to an intangible system of value that makes the exchange of goods and services possible, now and in the future. Currency is simply one, tangible form of money.

Detailed explanation-3: -In India, Paper money are the money which are issued by the central bank of a country in form of paper that acts as an unlimited legal tender in the economy. It is also known as legal tender money as it is legally accepted as the common medium of exchange in the economy.

Detailed explanation-4: -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.