Practice Issuing Currency (5.8.1) - Money and Banking – Basic Concepts
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Issuing Currency

Practice - Issuing Currency

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What organization is responsible for issuing currency in India?

💡 Hint: Think of the central bank in India.

Question 2 Easy

What happens when too much currency is issued?

💡 Hint: Prices increase when there is too much money in circulation.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

Who has the exclusive authority to issue currency in India?

Reserve Bank of India
Government of India
Commercial Banks

💡 Hint: Think of the main banking institution in India.

Question 2

True or False: The issuance of currency can influence inflation rates.

True
False

💡 Hint: Reflect on how money supply relates to prices.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Evaluate the effects of increasing the cash reserve ratio on the economy. How does it impact money supply and interest rates?

💡 Hint: Consider the flow of money and banking operations.

Challenge 2 Hard

Analyze a scenario where the RBI decides to double the currency supply. What would be the immediate effects on the economy?

💡 Hint: Think about the relationship between supply and demand.

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