Question

Assertion (A): Rupees is accepted as medium of exchange in India.

Reason (R): The World Bank legalises the use of rupee as a medium of payment in India.

Options

• Both (A) and (R) are correct and (R) is the correct explanation of (A).

• Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

• (A) is correct, but (R) is incorrect. 

• (A) is incorrect, but (R) is correct.

Answer 1

(A) is correct, but (R) is incorrect. 

Explanation:

The rupee is accepted as a medium of exchange in India because it is legally issued and regulated by the Reserve Bank of India (RBI), not the World Bank.