UPSC Exam > UPSC Questions > Consider the following statements and identif...
Start Learning for Free
Consider the following statements and identify the right ones
1. RBI has the sole right to issue currency notes
2. Minimum reserve system has been replaced by proportional reserve system
1. RBI has the sole right to issue currency notes
2. Minimum reserve system has been replaced by proportional reserve system
- a)1 only
- b)2 only
- c)1 and 2 both
- d)None
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Consider the following statements and identify the right ones1. RBI ha...
Statement 1 is true: Yes, the Reserve Bank of India (RBI) has the sole authority to issue currency notes in India, excluding one rupee notes and coins, which are issued by the Ministry of Finance. Section 22 of the Reserve Bank of India Act gives the RBI this authority.
Statement 2 is False: The Reserve Bank of India (RBI) replaced the proportional reserve system with the minimum reserve system (MRS) in 1956 to make note issuance more flexible and to meet the economy's growing currency needs.
Hence Statement 1 is correct.
Statement 2 is False: The Reserve Bank of India (RBI) replaced the proportional reserve system with the minimum reserve system (MRS) in 1956 to make note issuance more flexible and to meet the economy's growing currency needs.
Hence Statement 1 is correct.
Most Upvoted Answer
Consider the following statements and identify the right ones1. RBI ha...
Explanation:
Therefore, the correct option is A.
- Statement 1 is correct as per Section 22 of the RBI Act, 1934, RBI has the sole right to issue currency notes except one rupee notes and coins which are issued by the government of India.
- Statement 2 is incorrect as the minimum reserve system has not been replaced by the proportional reserve system. The minimum reserve system requires banks to keep a minimum percentage of their deposits with RBI in the form of cash reserves, while the proportional reserve system requires banks to maintain reserves in proportion to their deposits.
Therefore, the correct option is A.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements and identify the right ones1. RBI ha...
The correct answer would be 'D' as RBI does not have the sole right to issue currency notes. Re. 1 note is issued by the Ministry of Finance of the Central Government. It is covered under the Coinage Act.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer?.
Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements and identify the right ones1. RBI has the sole right to issue currency notes2. Minimum reserve system has been replaced by proportional reserve systema)1 onlyb)2 onlyc)1 and 2 bothd)NoneCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup