Why then do people accepts such note &coins in exchange of goods which are apparently more valuable than these? How do you evaluate this statement?
Share
Why then do people accepts such note &coins in exchange of goods which are apparently more valuable than these? How do you evaluate this statement?
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Verified answer
Answer:
Because these currencies are backed by the cental bank of the nation. Although these currency and coins don't have their own value(intrinsic value) but due to the backing up legally by government and RBI they are legal tender across India. Backing up means that if anyone is not accepting the currency or coins he can be legally punished