Money: Meaning and Functions
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Fiat money includesMarks:1
currency notes and coins.
Fiat money is the money issued on the order of the government, hence only the currency in circulation is the fiat money.
The monetary system of note issue followed by India isMarks:1
minimum reserve system.
India follows a managed paper currency standard with a minimum reserve system of note issue. The currency of the country is backed by the reserves of gold and foreign exchange of 200 crores.
C-C economy is one in which exchange is betweenMarks:1
commodity to commodity.
Explanation:C stands for commodity. C-C economy is one in which commodities are exchanged for commodities or in which goods are exchanged for goods. C-C economy is an economy dominated by barter system of exchange.
Exchange of goods against goods is calledMarks:1
Explanation:Exchange of goods with goods is called barter system of exchange. Now, it is replaced by money as a medium of exchange.
The main characteristic of money isMarks:1
The main characteristics of money is general acceptability. Medium of exchange, measure of value and store of value are functions of money.