10 Questions
Why are transactions made in money?
A person holding money can easily exchange it for any commodity or service that he or she might want.
What is the term used to describe the situation where both parties have to agree to sell and buy each other's commodities?
Double coincidence of wants
Why does the shoe manufacturer first exchange shoes for money before buying wheat?
To facilitate the exchange of shoes for wheat
What are some examples of transactions involving money mentioned in the text?
Buying and selling goods, exchanging services, and making promises to pay money later
How does money simplify the process of exchanging goods and services?
Money allows a person to easily exchange it for any commodity or service that they might want.
What is the essential feature required in a barter system for goods to be directly exchanged without the use of money?
Double coincidence of wants
What term is used to describe the phase where metallic coins such as gold, silver, and copper were used as money?
Phase of metallic coins
Who issues currency notes on behalf of the central government in India?
Reserve Bank of India
What is the modern currency made of, and what makes it widely accepted as a medium of exchange?
Modern currency is made of paper notes and coins, and it is widely accepted because it is authorised by the government and legalised for use in settling transactions.
What provision do people have when they deposit money with banks, and what benefit do they receive for their deposits?
People have the provision to withdraw the money as and when they require, and they receive interest on their deposits.
Explore the various transactions involving money in everyday life, whether it's buying and selling goods, exchanging services, or making promises to pay in the future. Understand the reasons behind why these transactions are conducted using money.
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