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Questions and Answers
Why are transactions made in money?
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?
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?
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?
What are some examples of transactions involving money mentioned in the text?
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How does money simplify the process of exchanging goods and services?
How does money simplify the process of exchanging goods and services?
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What is the essential feature required in a barter system for goods to be directly exchanged without the use of money?
What is the essential feature required in a barter system for goods to be directly exchanged without the use of money?
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What term is used to describe the phase where metallic coins such as gold, silver, and copper were used as money?
What term is used to describe the phase where metallic coins such as gold, silver, and copper were used as money?
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Who issues currency notes on behalf of the central government in India?
Who issues currency notes on behalf of the central government in India?
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What is the modern currency made of, and what makes it widely accepted as a medium of exchange?
What is the modern currency made of, and what makes it widely accepted as a medium of exchange?
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What provision do people have when they deposit money with banks, and what benefit do they receive for their deposits?
What provision do people have when they deposit money with banks, and what benefit do they receive for their deposits?
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