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Practice Questions
Test your understanding with targeted questions related to the topic.
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.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
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.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation