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Internationalization of Rupee would mean
  1. Accumulating Indian rupee as a reserve currency all over the world by the central banks
  2. Repaying in rupees for the bonds issued globally
  3. Paying in rupees both for imports and exports
How many of the above statements are correct?
  • a)
    Only one 
  • b)
    Only two 
  • c)
    All three 
  • d)
    None
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Internationalization of Rupee would mean Accumulating Indian rupee as ...
Internationalisation of Rupee means the following:
  • When Indians import, they should be able to pay in rupees
  • When they export, they should accept payments in rupees
  • when they issue bonds globally, they should be able to repay in rupee regardless of the fact that they borrowed in foreign currency
  • All over the world individuals, companies and central banks should accumulate Indian rupee as a reserve currency because of its global demand.
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Most Upvoted Answer
Internationalization of Rupee would mean Accumulating Indian rupee as ...
Internationalization of Rupee


Summary:
The internationalization of the Indian rupee refers to the process of increasing the use and acceptance of the Indian rupee in international transactions. It involves various measures aimed at promoting the use of the rupee as a global currency.

Explanation:


Accumulating Indian rupee as a reserve currency all over the world by the central banks

This statement is correct. Internationalization of the rupee involves central banks of different nations holding Indian rupee as a reserve currency. When a currency is widely held by central banks across the world, it enhances its status as an international reserve currency, similar to the US dollar, euro, or Japanese yen.

Repaying in rupees for the bonds issued globally

This statement is correct. When the rupee is internationalized, it would mean that the bonds issued by the Indian government or Indian companies in international markets would be repaid in rupees. This would increase the acceptance and demand for rupees in global financial markets.

Paying in rupees both for imports and exports

This statement is correct. Internationalization of the rupee would also involve promoting the use of rupees for both import and export transactions. Currently, most international trade is conducted in major global currencies such as the US dollar or euro. However, with the internationalization of the rupee, there would be an increased acceptance and usage of the rupee for trade settlements.

Therefore, all three statements mentioned in the question are correct. Internationalization of the rupee would involve central banks accumulating Indian rupee as a reserve currency, repaying bonds issued globally in rupees, and promoting the use of rupees for both imports and exports.
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Internationalization of Rupee would mean Accumulating Indian rupee as a reserve currency all over the world by the central banks Repaying in rupees for the bonds issued globally Paying in rupees both for imports and exportsHow many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?
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Internationalization of Rupee would mean Accumulating Indian rupee as a reserve currency all over the world by the central banks Repaying in rupees for the bonds issued globally Paying in rupees both for imports and exportsHow many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. 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 Internationalization of Rupee would mean Accumulating Indian rupee as a reserve currency all over the world by the central banks Repaying in rupees for the bonds issued globally Paying in rupees both for imports and exportsHow many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Internationalization of Rupee would mean Accumulating Indian rupee as a reserve currency all over the world by the central banks Repaying in rupees for the bonds issued globally Paying in rupees both for imports and exportsHow many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
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