ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Promote global trade
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Control exchange of goods and services
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Promote monopolies
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Help make exchange of goods and services easier
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Detailed explanation-1: -In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI.
Detailed explanation-2: -The Indian currency is called the Indian Rupee (INR). One Rupee consists of 100 Paise. The symbol of the Indian Rupee is ₹.
Detailed explanation-3: -Monetary financing governments do not create money; the central bank does. But with the central bank’s cooperation, the government can in effect finance itself by money creation. It can issue bonds and ask the central bank to buy them.
Detailed explanation-4: -Banks are a critical intermediary in what is called the payment system, which helps an economy exchange goods and services for money or other financial assets.