ECONOMICS (CBSE/UGC NET)

ECONOMICS

FEDERAL RESERVE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Currency is made of a combination of
A
wood pulp and cotton
B
wool and silk fiber
C
linen and burlap
D
cotton and linen
Explanation: 

Detailed explanation-1: -Cotton banknotes are made from cotton paper, a mix of cotton (75%) and linen (25%). In Europe, for instance, so-called comber noils are used. These are short cotton fibers that are a waste stream from the textile industry.

Detailed explanation-2: -Federal Reserve notes are a blend of 25 percent linen and 75 percent cotton. Currency paper has tiny red and blue synthetic fibers of various lengths evenly distributed throughout the paper. It would take 4, 000 double folds, forwards and backwards, to tear a banknote.

Detailed explanation-3: -What is currency paper made up of? The paper currently being used for printing of banknotes in India is made by using 100% cotton.

Detailed explanation-4: -It is used to make currency notes because it is more sustainable and long-lasting. According to the Reserve Bank of India, the note uses 100 per cent cotton. Cotton is stronger than paper and they don’t tear easily. Cotton is used to make currency notes not only in India but in many other countries as well.

Detailed explanation-5: -According to the Reserve Bank of India, notes are printed using 100 per cent cotton. Cotton banknotes are made using a special formula, which are a mix of 75 percent cotton and 25 percent linen. During the printing process, the cotton is mixed with a gelatin adhesive solution that makes them last longer.

There is 1 question to complete.