Why people hold notes and coins when it is clear that the intrinsic value of notes and coins is almost negligible?
Dear student, ● People hold notes and coins even when it is clear that the intrinsic value of notes and coins is almost negligible in order to have a standard set of exchanging transaction. Every economy need to have a standard basis of legal tender in order to trade effectively. Also, the notes and coins have been declared by the government as a legal tender i.e. a fiat currency which means that no one can refuse the currency notes and coins as these has been set as a basis of a transaction as per the order of monetary authorities and government . ● Regards