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Unit 4 Ch 3 : Money and Credit — Social Studies STD 10 — Question

CBSE BoardEnglish MediumSTD 10Social StudiesUnit 4 Ch 3 : Money and Credit3 Marks
Question
How do currency notes act as a medium of exchange?
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Answer

It is the authorization of the RBI of currency notes and coins which makes it act as a medium of exchange.
In India, the RBI issues the currency on behalf of the central government. It is the law in India that legalizes the currency notes as a medium of exchange.

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