Question

What is maintained as reserves for the currency notes issued by the RBI?

• A. Stocks of goods
• B. Gold or foreign exchange reserves
• C. Government bonds
• D. Real estate assets

Answer 1

Answer:

B. Gold or foreign exchange reserves

► Printing of notes

• All notes except the one rupee note are printed by the Reserve Bank of India.

• The one rupee note and related coins are printed by the central finance department.

• Gold or foreign exchange reserves of a fixed value are kept as reserves for currency notes.