4. Though a hundred rupee note can be used to obtain
commodities worth Rs 100 from a shop, the value the paper
itself is negligible - certainly less than Rs 100. Similarly the
value of the metal in a five-rupee coin is probably not worth
Rs 5. Why then do people accept such notes and coins in
exchange of goods which are apparently more valuable than
these? How do you evaluate this statement?
Plzz if u know the answer than give but if u don't know so don't give answer ❤️❤️
commodities worth Rs 100 from a shop, the value the paper
itself is negligible - certainly less than Rs 100. Similarly the
value of the metal in a five-rupee coin is probably not worth
Rs 5. Why then do people accept such notes and coins in
exchange of goods which are apparently more valuable than
these? How do you evaluate this statement?
Plzz if u know the answer than give but if u don't know so don't give answer ❤️❤️
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Answer:
Money is the commonly accepted medium of exchange. In an economy which consists of only one individual there cannot be any exchange of commodities and hence there is no role for money.
Even if there are more than one individual but they do not take part in market transactions, such as a family living on an isolated island, money has no function for them.
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Explanation:
Answer:
Money is the commonly accepted medium of exchange. In an economy which consists of only one individual there cannot be any exchange of commodities and hence there is no role for money.
Even if there are more than one individual but they do not take part in market transactions, such as a family living on an isolated island, money has no function for them.
I HOPE IT WILL HELPFUL TO YOU
IF IT'S HELPFUL THEN PLS FOLLOW ME AND MARK ME AS BRAINLIST.