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The present Indian monetary system is based on?
Gold Reserve System
Proportional Reserve System
Convertible Currency System
Minimum Reserve System
Select from the options above.
Correct Option: 4
The relationship between note issue and its reserve backing is usually done on the basis of a reserve system by central banks across the world. The reserve system provides guidelines for the issue of new currencies.
In India, currencies are issued by the RBI with the backing of reserves comprised of gold and foreign exchange (foreign currencies).
Dec 11, 2017
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