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Why money is accepted as exchange of medium?
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Why money is accepted as exchange of medium?
Because it does not have its own value. In ancient times, gold coins, grains, silver, etc. things were used as medium of exchange but the problem was that they have their own value while a note of 10 rupees is just a piece of paper if it is not granted by RBI.
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Why money is accepted as exchange of medium?
Why money is accepted as exchange of medium?
- Introduction: Money is a medium of exchange used in transactions for buying goods or services. It has been in use for thousands of years, and it has become an integral part of our daily lives.
- Convenience: Money is accepted as a medium of exchange because of its convenience. It is portable, divisible, and easily transferable. It can be carried in wallets, purses, and pockets, making it easy to transport from one place to another. It can also be divided into smaller denominations, making it easier to make transactions of varying amounts.
- Standard of Value: Money is used as a standard of value to measure the worth of goods and services. It provides a common measure of value, making it easier to compare the value of different goods and services. This makes it easier for people to decide how much they are willing to pay for a particular item.
- Store of Value: Money is also accepted as a store of value. It can be saved and used at a later time to make purchases. This makes it possible for people to save money for future needs, such as retirement or emergencies.
- Trust: Money is accepted as a medium of exchange because people trust it. They trust that it will retain its value over time, and they trust that it can be used to buy goods and services. This trust is built on a social and legal framework that supports the use of money in transactions.
- Conclusion: In conclusion, money is accepted as a medium of exchange because of its convenience, standard of value, store of value, and trust. Its widespread use has made it an integral part of our daily lives, and it will continue to be used as a medium of exchange for years to come.
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Why money is accepted as exchange of medium?
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Why money is accepted as exchange of medium? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Why money is accepted as exchange of medium? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why money is accepted as exchange of medium?.
Why money is accepted as exchange of medium? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Why money is accepted as exchange of medium? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why money is accepted as exchange of medium?.
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