monetary system is
paper currency. Remember, monetary sys
the type of standard money used in the econon
In India, all currency circulating in the econom
paper currency which is unlimited legal tend.
money i.e. it can be used to settle debts and make
payments of any amount. Paper currency in
broader sense includes coins.
Again 'Paper Currency Standard' 'is also
known as 'Managed Currency Standard' because
any amount of notes can be issued with minimum
back up of gold. In India, RBI issues all paper
notes except one-rupee note and coins. For note
issue RBI uses Minimum Reserve System
according to which RBI maintains a minimum
reserve of 200 crore of which 115 crore is in
gold and the remaining 85 crore is in the form of
foreign securities.
(i) In India, RBI issues all paper notes except
one rupee note and coins. RBI has the sole
monopoly to issue currency notes in India from
* 2 and above. The Central Government
(Ministry of Finance) issues one-rupee notes and
all coins.
(ii) For note issue India follows the Minimum
Reserve system according to which the Central Bam
keeps a minimum reserve of gold and foreis
exchange and on this basis can issue notes to
extent.
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Answers
Explanation:
monetary system is
paper currency. Remember, monetary sys
the type of standard money used in the econon
In India, all currency circulating in the econom
paper currency which is unlimited legal tend.
money i.e. it can be used to settle debts and make
payments of any amount. Paper currency in
broader sense includes coins.
Again 'Paper Currency Standard' 'is also
known as 'Managed Currency Standard' because
any amount of notes can be issued with minimum
back up of gold. In India, RBI issues all paper
notes except one-rupee note and coins. For note
issue RBI uses Minimum Reserve System
according to which RBI maintains a minimum
reserve of 200 crore of which 115 crore is in
gold and the remaining 85 crore is in the form of
foreign securities.
(i) In India, RBI issues all paper notes except
one rupee note and coins. RBI has the sole
monopoly to issue currency notes in India from
* 2 and above. The Central Government
(Ministry of Finance) issues one-rupee notes and
all coins.
(ii) For note issue India follows the Minimum
Reserve system according to which the Central Bam
keeps a minimum reserve of gold and foreis
exchange and on this basis can issue notes to
extent.
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Answer:
A monetary system is a system by which a government provides money in a country's economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks