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The present Indian monetary system is based on?

–1 vote
AGold Reserve System
BProportional Reserve System
CConvertible Currency System
DMinimum Reserve System

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).
posted Dec 11, 2017 by Sumana

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