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Question
Look at a 10 rupee note. What is written on top? Can you explain this statement?
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Solution
A ten rupee note has “Reserve Bank of India” written at the top, along with a statement “guaranteed by the central government”, following it. It is a promissory note and can only be issued by the Reserve Bank of India, which supervises all money-related functions in the formal sector in India. The statement on the ten-rupee bank note relates to this idea that the RBI is the central organ in the working of money-related activities.
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