Solution:
The modern forms of money include currency - paper notes and coins. Paper notes and coins are the modern forms of money. Money is something which can be used as a medium of exchange in transactions. The barter system was prevalent in the past. Then metallic coins were introduced, which were made of gold, silver and copper. The modern coins, however, are not made of any precious metal. The paper notes and coins are accepted as a medium of exchange because the country's government and the central bank have authorised them as a valid medium of exchange. In India, no person can refuse a payment made in Indian rupees.
