Home
Class 12
ECONOMICS
Why is the central bank sole authority f...

Why is the central bank sole authority for the issue of currency in the country?

Text Solution

Verified by Experts

The central bank i.e RBI is the sole authority for issue of currency in the country as:
(i) It ensures uniformity in note circulation
(ii) It enables governament to control money supply through RBI
(iii) It builds up public faith in the currency system.
Doubtnut Promotions Banner Mobile Dark
|

Topper's Solved these Questions

  • Banking

    RADHA BHUGANA|Exercise Hguidelines to NCERT Question|1 Videos

  • Banking

    RADHA BHUGANA|Exercise Short Answer Type Questions|2 Videos

  • Banking

    RADHA BHUGANA|Exercise Higher Order Thinking Skills|5 Videos

  • BALANCE OF PAYMENTS

    RADHA BHUGANA|Exercise VERY SHORT ANSWER TYPE QUESTIONS|5 Videos

  • CIRCULAR FLOW OF INCOME

    RADHA BHUGANA|Exercise LONG ANSWER TYPE QUESTION|4 Videos

Similar Questions

Explore conceptually related problems

What is a central bank?

Who issues currency in India?

Knowledge Check

  • Real' is the currency of which country?

    A
    South Africa
    B
    Brazil
    C
    Ghana
    D
    Cambodia

  • RBI is the sole authority to issue currency to ensure:

    A
    uniformity in note circualtion
    B
    build up public faith in the currency system
    C
    govt control over the money supply
    D
    all of these

  • The RBI issues currency notes under the :

    A
    Fixed Fiduciary System
    B
    Maximum Fiduciary System
    C
    Minimum Reserve System
    D
    Proportional Reserve System

    • Similar Questions

    Explore conceptually related problems

    Discuss the meaning of any two methods of controlling credit which may be adopted by the 4 central bank. OR Explain the “bank of issue’ function of the central bank.

    Define a Central Bank .

    Manat the currency of which country ?

    Who issues currency notes in India ?

    Who has the sole right to issue paper currency in India ?

    Home
    Profile