Get a free home demo of LearnNext

Available for CBSE, ICSE and State Board syllabus.
Call our LearnNext Expert on 1800 419 1234 (tollfree)
OR submit details below for a call back


Definition and Modern Forms of Money

Have a doubt? Clear it now.
live_help Have a doubt, Ask our Expert Ask Now

Definition and Modern Forms of Money - Lesson Summary

IN the early times, people used to exchange one commodity for another, depending on their requirement under the barter system. However, exchanging goods in the barter system required double coincidence of wants.

However, money eliminates the need for double coincidence of wants. Since money enables the exchange process, it is also called a medium of exchange. Early forms of money were things of daily use.

Modern currency:
  • Uses paper notes and coins made of relatively inexpensive metals
  • Has no value of its own
  • Has a value only because it is authorised by the government of a country

In India, the Reserve Bank of India is the only legal authority that can issue currency notes and coins on behalf of the central government. The Rupee is India‚Äôs currency and nobody can refuse to accept a payment made in rupees in India.


Feel the LearnNext Experience on App

Download app, watch sample animated video lessons and get a free trial.

Desktop Download Now
Try LearnNext at home

Get a free home demo. Book an appointment now!