Answer the questions asked below:
(i)Why are transactions are made in money?
(ii)Why is money is called a medium of exchange?
(iii)What is the most significant feature of the barter system?
(i) Because money is easily acceptable. A person holding money can easily exchange it for any commodity or service that he or she might want.
(ii) Because it acts as an intermediate in the exchange process.
(iii) Double coincidence of wants.
Why do we need to expand formal sources of credit in India?
Why is money accepted as a medium of exchange in India?
'Cheap and affordable credit is crucial for the development'. Explain.
Explain the functions of money.
