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Question : Identify the incorrect statement given below:

Option 1: Present currency can work as money as it is a legal tender.

Option 2: Coins held by the public are limited legal tender.

Option 3: Central bank prints currency in India.

 

Option 4: Central banks do not deal with the general public.


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Central bank prints currency in India.


Solution : The correct answer is (c). Central bank prints currency in India.**

The central bank of India, the Reserve Bank of India (RBI), does not print currency. The currency in India is printed by the Government of India Security Printing and Minting Corporation (SPMC). The RBI is responsible for issuing currency, but it does not print it.

The other statements are all correct. Currency is a legal tender, which means that it must be accepted as payment for debts. Coins held by the public are limited legal tender, which means that they can only be used to pay debts up to a certain amount. Central banks do not deal with the general public, but they do interact with commercial banks and other financial institutions.

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