Question

Explain the "Note of issue" function of a Central Bank​

Answer 1

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The Reserve bank of India has the authority to issue currency. The current system of Indian government to issue notes is “Minimum Reserve System”. Under this policy, the minimum reserves to be maintained in the form of gold and foreign exchange should consists of rupees 200 crore.

Answer 2

Answer:

The central bank is the bank of issue. It has the monopoly of note issue. Notes issued by it circulate as legal tender money. It has its issue department which issues notes and coins to commercial banks.

Explanation:

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