ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The money factory.
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The government prints it.
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College school boards.
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Parents to children, back to parents.
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Detailed explanation-1: -Monetisation occurs when the central bank buys bonds directly from the government. It is called ‘money printing’ as new money is created (not necessarily banknotes) without a corresponding increase in nominal GDP.
Detailed explanation-2: -The Reserve Bank of India (RBI) prints and manages currency in India, whereas the Indian government regulates what denominations to circulate. The Indian government is solely responsible for minting coins. The RBI is permitted to print currency up to 10, 000 rupee notes.
Detailed explanation-3: -Bank notes are printed at four currency presses, two of which are owned by the Government of India through its Corporation, Security Printing and Minting Corporation of India Ltd. (SPMCIL) and two are owned by the Reserve Bank, through its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Private Ltd.
Detailed explanation-4: -Federal Reserve Bank cash offices distribute banknotes to the public through depository institutions, such as commercial banks, credit unions, and savings and loans associations. Federal Reserve Banks are responsible for processing banknotes to ensure that they are genuine and fit for recirculation.
Detailed explanation-5: -The government owned presses are at Nasik (Western India) and Dewas (Central India). The other two presses are at Mysore (Southern India) and Salboni (Eastern India). Coins are minted in four mints owned by the Government of India. The mints are located at Mumbai, Hyderabad, Calcutta and NOIDA.