English

Government grants the exclusive right to the central bank to issue notes on its behalf.

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Question

Government grants the exclusive right to the central bank to issue notes on its behalf.

Options

  • True

  • False

MCQ
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Solution

True

Explanation:

The government grants the central bank an exclusive monopoly on issuing currency notes to ensure uniform legal tender, control the money supply, and maintain public confidence. In India, the RBI issues all currency notes except one-rupee notes, which are issued by the government.

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Chapter 14: Banking - EXERCISES [Page 271]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 14 Banking
EXERCISES | Q 40. | Page 271
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