Machine-translated by Google. Questions are authored in English.
Top

Discussion

Which one of the following methods is currently used in India to issue note?

  • A.Fixed Fiduciary System
  • B.Maximum Fiduciary System
  • C.Percentage Reserve System
  • D.Minimum Reserve System

Answer: D

It is the Minimum Reserve System.

Since 1957 the Reserve Bank must hold assets of at least Rs 200 crore, of which Rs 115 crore in gold, and may issue notes to any amount above that. It replaced the proportional reserve system, which had tied issue to a fixed fraction of reserves.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.