Question

Which principle is adopted in case of non-convertible paper money?
(a) Payment Equilibrium/Parity
(b) Coin parity
(c) Purchasing power parity
(d) None of these

Answer 1

Answer:

paper equilibrium

For a long time, paper money remained a convertible paper money. Under this, money is convertible into standard coins made of gold or silver. Under it the paper currency issued by the Central Bank was fully backed by the reserves of gold and silver of equal value kept by it.

Answer 2

Answer:

none of these is the answer