UPSC Exam  >  UPSC Questions  >  Consider the following statements: The Reserv... Start Learning for Free
Consider the following statements:
  1. The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender.
  2. The Reserve Bank of India is solely responsible for the designing and minting
  3.  of coins in various denominations.
  4. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.
 How many of the statements given above are correct?  
  • a)
    Only one  
  • b)
    Only two  
  • c)
    All three  
  • d)
    None 
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements: The Reserve Bank of India has the p...
Statement 1 is incorrect: The design, form and material of bank notes shall be approved by the Central Government on the recommendations of the Central Board of the RBI. Every bank note shall be a legal tender at any place in India, however, on recommendation of the Central Board, the Central Government may declare any series of bank notes of any denomination to be not a legal tender.
Statement 2 is incorrect: In terms of Section 22 of the Act, the Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI. The Government of India is responsible for the designing and minting of coins in various denominations as per the Coinage Act, 2011.
Statement 3 is incorrect:  The RBI Act provides for a statutory basis for the Monetary
Free Test
Community Answer
Consider the following statements: The Reserve Bank of India has the p...
The correct answer is option 'D' - None.
Explanation:
- The Reserve Bank of India has the power to declare any series of banknotes of any denomination to be not a legal tender. This statement is true as the RBI has the authority to demonetize any series of banknotes.
- The Reserve Bank of India is not solely responsible for designing and minting coins in various denominations. The responsibility for designing and minting coins lies with the Government of India, specifically the Ministry of Finance.
- The Reserve Bank of India does not determine the inflation target in terms of the Consumer Price Index. The inflation target is set by the Monetary Policy Committee (MPC) of the RBI, not the RBI itself. The MPC reviews the target once every two months, not once every two years.
Therefore, none of the statements given above are correct.
Explore Courses for UPSC exam

Top Courses for UPSC

Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. 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: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. 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: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. 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: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Consider the following statements: The Reserve Bank of India has the powers to declare any series of bank notes of any denomination to be not a legal tender. The Reserve Bank of India is solely responsible for the designing and minting of coins in various denominations. The Reserve Bank of India determines the inflation target in terms of the Consumer Price Index, once every two years.How many of the statements given above arecorrect? a)Only one b)Only two c)All three d)NoneCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev