Sail E0 Webinar
Question
Which of the following systems is followed by the Reserve Bank of India for issuing currency?
Options:
A .  Proportionate system
B .  Simple deposit system
C .  Minimum reserve system
D .  Fixed fiduciary issue system
Answer: Option C
:
C
The RBI follows the minimum reserve system, wherein it has to maintain a minimum quantity of gold bullion as reserves to issue currency.

Was this answer helpful ?
Next Question

Submit Solution

Your email address will not be published. Required fields are marked *

Latest Videos

Latest Test Papers