All In One - Economics

Book: All In One - Economics

Chapter: 3. Money and Credit

Subject: Social Science - Class 10th

Q. No. 6 of Self Assessment

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How do currency notes act as a medium of exchange?

It is the authorization of the RBI of currency notes and coins which makes it act as a medium of exchange.

In India, the RBI issues the currency on behalf of the central government. It is the law in India that legalizes the currency notes as a medium of exchange.

Chapter Exercises

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