Money and Credit

Both parties, the seller and the buyer have to agree to sell and buy each other commodities.

• Barter system

• Double coincidence of wants

• Terms of credit

• Collateral

Goods are directly exchanged without the use of money in this system.

• Cooperative system

• Bank system

• Barter system

• Pascal system

_________ is called the medium of exchange

• Cheque

• Deposits

• Money

• Bitcoins

________ and ________ are the ancient forms of money

• Currency notes and deposits

• Grains and cattle

• Gold and silver coins

• Cheques and deposits

The currency is authorised by the ________ of the country

• government

• The Reserve of Bank

• The Central Bank of India

• The Federal Bank of India

In India, the ________ of India issues currency notes on behalf of the central government

• The Reserve Bank of India

• The Federal Bank of India

• The Central Bank of India

• The World Bank

The _____ legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India.

• Government

• Law

• Court

• Prime Minister

No individual in India can legally refuse a payment made _________.

• Rupees

• money

• deposits

• cheque

Banks accept the deposits and also pay an amount as ________ on the deposits.

• Profit

• Interest

• Divident

Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called _________.

• Fixed deposits

• Demand deposits

• Bonds