A cheque like currency notes act as:

(A) cash

(B) a store of value

(C) a medium of exchange

(D) a demand deposit

 

Answer: 

So the correct answer is (C) - a medium of exchange.

Explanation

A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued . So it acts as a medium of exchange.

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.