Answer : Reserve Bank of India (RBI) is the institution that authorizes the money as a medium of exchange. RBI is the central bank of India.
In India, the currency notes are issued by the Reserve Bank of India (RBI) on behalf of the central government. 67.
Which of the following is money as a medium of exchange?
Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
Which is the best medium of exchange in India?
Modern currency is accepted as a medium of exchange without any use of its own because:
- Modern currency is authorized by the government of a country.
- In India, the Reserve Bank of India issues all currency notes on behalf of central Government.
- No other individual or organization is allowed to issue currency.
Is gold a medium of exchange?
Most commodity-money advocates choose gold as a medium of exchange because of its intrinsic properties. Gold has non-monetary uses, especially in jewelry, electronics, and dentistry, so it should always retain a minimum level of real demand.
Why money is medium of exchange?
Money is a medium of exchange; it allows people to obtain what they need to live. Bartering was one way that people exchanged goods for other goods before money was created. Like gold and other precious metals, money has worth because for most people it represents something valuable.
What are the alternative measures of money supply in India?
There is no one way to calculate the money supply in our economy. Instead, the Reserve Bank of India has developed four alternative measures of money supply in India. These four alternative measures of money supply are labelled M1, M2, M3 and M4.
What is money and credit 10?
The difference between interest on borrowing money and the interest of deposited money is the income for the bank. Two different credit situations. • Credit is an agreement in which is created when a person gives money and goods to the needy person with the promise of to repay that with some rate of interest.
Is a debit card a medium of exchange?
It suggests that money should be exclusively defined as “medium of exchange,” rather than “means of payment.” With such a distinction established, one can uniformly explain why currency, demand deposits and smart cards are money (because they are a medium of exchange), and why checks, money orders, or debit and credit …
Which is the first stage of evolution of money?
Some of the major stages through which money has evolved are as follows: (i) Commodity Money (ii) Metallic Money (iii) Paper Money (iv) Credit Money (v) Plastic Money. Money has evolved through different stages according to the time, place and circumstances.
What are the forms of exchange?
There are three basic types of exchange regimes: floating exchange, fixed exchange, and pegged float exchange.