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Question
Which of the following institutions is authorised to issue currency in India?
Options
Reserve Bank of India
Bank of India
Parliament of India
State Bank of India
Solution
Reserve Bank of India
Explanation:
The Reserve Bank of India (RBI) is a body authorised to issue money in India. The central bank of the country regulates the money supply and issues banknotes, with the exception of the ₹ 1 note issued by the Ministry of Finance.
RELATED QUESTIONS
Currency and ______ are two modern forms of money.
Who regulates money supply in India?
Money whose value as a commodity is equal to its face value is called:
Which of the following agency is responsible for issuing ₹ 1 currency note in India?
Which one of the following is not a modern form of money?
Indian rupee is legal tender.
______ are termed as Legal Tender Money.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank money is legal tender money.
Reason (R): Cheques drawn on demand deposits can be refused by anyone as a mode of payment. Hence, demand deposits (i.e. bank money) are not legal tenders they are optional.
Read the-following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Currency and bank money are the two modern forms of money.
Reason (R): Currency is high powered money.
Match the following:
| Column I | Column II | ||
| A. | Currency | (i) | Something which is commonly used as medium of exchange |
| B. | Bank money | (ii) | Currency and demand deposits |
| C. | Money | (iii) | Bank demand deposits |
| D. | Modern form of money | (iv) | Paper notes + coins |
Why is money referred to as legal tender?
Distinguish between fiat money and bank money.
What is fiat money?
