Question

What is a currency?

• A. It is a medium of useful exchange of goods and services.
• B. It is a piece of paper that can be printed by anyone.
• C. It is always made of gold.
• D. None of the above.

Answer 1

The correct option is A

It is a medium of useful exchange of goods and services.

A currency is a medium (which can be money, rupees, coins etc.) to which a value is attached. Because a value is attached to it, we can use a currency and exchange it for buying goods and services.