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Question
Which of the following statements is true?
Options
All financial institutions .are banking institutions.
RBI has the complete authority to issue currency notes.
The government of India issues currency notes
Banking institutions issue currency notes
MCQ
Solution
RBI has the complete authority to issue currency notes.
Explanation:
The central bank takes on the role of a monopolist in currency-issuing in order to preserve currency homogeneity across the country and to retain centralised control over the money supply process.
shaalaa.com
Central Bank: Functions
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