Q. 114.8( 4 Votes )

‘The Rupee is widely accepted as a medium of exchange’. Explain.

Answer :

In India, the rupee is widely accepted as a medium of exchange because of the authentication of the Reserve Bank of India (RBI). RBI plays an essential role in printing the currencies, there is no other authority other than RBI has the power to issue the currency and it has the sole authority. RBI is the central bank of India which on behalf of the central government in financial matters. It is the law that legalizes the use of rupee as a medium of exchange anywhere in India. No person can refuse the Rupee for the transaction; if he refuses, then he can be sued by law. Therefore it is the law that makes the rupee as a widely accepted as a medium of exchange in the country.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Becoming a bilionaire -learning fundamentals of money48 mins
A Letter to God50 mins
Idioms and Phrases43 mins
Goprep Genius Quiz | Analogy and Classification48 mins
Acid - Types and Nomenclature52 mins
Agriculture and its Importance35 mins
Foundation | Permutation and Combination45 mins
Metaphor and Simile41 mins
Champ Quiz | Electrical Power and Heating31 mins
Surface Area and Volume49 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses