In India, the one rupee note is issued by
- A.The Reserve Bank of India
- B.The State Bank of India
- C.The Government of India
- D.The Security Printing and Minting Corporation
Correct answer
Explanation
The correct answer is C, the Government of India. The one rupee note and all coins are issued by the Government of India through the Ministry of Finance, and the one rupee note carries the signature of the Finance Secretary rather than that of the Governor of the Reserve Bank. The Reserve Bank acts only as the agency that distributes them.
Option A, the Reserve Bank of India, issues every currency note of a denomination above one rupee, and those notes carry the Governor's signature, but not the one rupee note. Option B, the State Bank of India, is a commercial bank and does no note issue at all, although it acts as an agent of the Reserve Bank in places where the latter has no office. Option D, the Security Printing and Minting Corporation of India, runs the presses and mints that physically print notes and strike coins, but printing is not issuing. The distinction between issuing and printing is exactly what this question tests.
Read the full article: Money and Banking in India: RBI, Supply and Policy
Practice Questions
View allThe Reserve Bank of India began its operations on which date?
- A.1 April 1935
- B.1 January 1949
- C.1 July 1955
- D.19 July 1969
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The Reserve Bank of India was constituted under the Reserve Bank of India Act of 1934, on the recommendation of the Hilton Young Commission, and started functioning on 1 April 1935 with its central office at Calcutta, which was shifted permanently to Bombay in 1937.
Read the full explanation →In the measurement of money supply in India, which aggregate is known as broad money?
- A.M0
- B.M1
- C.M3
- D.M4
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M3 is M1 plus time deposits with banks, and it is called broad money or the aggregate monetary resource. It is the measure the Reserve Bank follows most closely because it captures both spendable balances and funds held for a fixed term.
Read the full explanation →The repo rate is the rate of interest at which
- A.Commercial banks lend to their prime customers
- B.The Reserve Bank lends short-term funds to banks against government securities
- C.The Reserve Bank borrows surplus funds from commercial banks
- D.Banks pay interest on savings deposits
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In a repurchase or repo transaction a bank sells government paper to the Reserve Bank and agrees to buy it back shortly afterwards at a slightly higher price; the difference works out as interest at the repo rate.
Read the full explanation →How many commercial banks were nationalised in India in the first round of bank nationalisation in July 1969?
- A.Six
- B.Twelve
- C.Fourteen
- D.Twenty
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On 19 July 1969 the government nationalised fourteen of the largest commercial banks in the country, the aim being to take banking to rural areas, direct credit to agriculture and small industry, and end the concentration of bank funds in a few business houses.
Read the full explanation →The Reserve Bank of India was nationalised in which year?
- A.1935
- B.1949
- C.1955
- D.1969
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The Reserve Bank began in 1935 as a shareholders' bank with privately held capital.
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