How is modern form of currency accepted as a medium of exchange?
Or
Why is currency accepted as a medium of exchange?
Answer:
- Modern forms of money include currency—paper notes and coins.
- Modern currency is not made of precious metals such as gold, silver and copper.
- The modern currency is without any use of its own.
- In India, Reserve Bank of India issues currency notes on behalf of the Central government.
- As per the Indian law, no other individual or organisation is allowed to issue currency.
- No individual in India can legally refuse a payment made in rupees.