Q18
In India currency-notes issue system is based on
A.
Proportional Reserve System
B.
Minimum Reserve System
AnswerC.
Fixed Exchange Rate System
D.
Fully Convertibility System
Answer: Option B
Solution
Answer: Option B
Solution:
In India currency-notes issue system is based on Minimum Reserve System. Under the Minimum Reserve System, the RBI has to keep a minimum reserve of Rs 200 crore comprising of gold coin and gold bullion and foreign currencies.