The _______ has the sole authority to issue banknotes in India.
- A.State Bank of India
- B.Securities bank
- C.World bank
- D.Reserve bank of India
Correct answer
Explanation
The correct answer is D, Reserve Bank of India. Under Section 22 of the RBI Act, 1934, the Reserve Bank has the sole right to issue banknotes in India. The RBI was set up on 1 April 1935 and nationalised in 1949, and its head office is in Mumbai. It issues notes under the Minimum Reserve System, keeping at least ₹200 crore in gold and foreign assets, of which ₹115 crore must be gold. One small exception is worth remembering: the one-rupee note and all coins are issued by the Government of India through the Ministry of Finance, while the RBI only puts them into circulation. A is wrong because the State Bank of India is the largest commercial bank but cannot print currency. B is wrong because no body called a 'Securities bank' has any power to issue currency in India. C is wrong because the World Bank is an international lender in Washington, D.C., and issues no country's currency. Exam tip: the RBI issues all notes except the one-rupee note, which, like coins, is issued by the Government of India.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
Show answer
GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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