Q. Who issues the currency notes in India?
✅ Correct Answer: (C)
Only Reserve Bank of India can issue currency notes.
Banking and Finance MCQs and Notes
Q. Why is currency accepted as a medium of exchange?
✅ Correct Answer: (A)
Because the currency is authorised by the government of the country.
Q. Which one of the following is the new way of providing loans to the mral poor?
✅ Correct Answer: (D)
SHGs
Q. The informal source of credit does not include which one of the following?
✅ Correct Answer: (C)
Cooperative Societies
Q. What percentage of their deposits is kept as cash by the banks in India?
✅ Correct Answer: (C)
15%
Q. Banks use the major portion of the deposits to:
✅ Correct Answer: (C)
Extend loans
Q. Banks provide a higher rate of interest on which of the following accounts?
✅ Correct Answer: (C)
Fixed deposits for long period
Q. In which of the following systems exchange of goods is done without use of money?
✅ Correct Answer: (B)
Barter system
Q. Which among the following authorities issues currency notes on behalf of the government?
✅ Correct Answer: (D)
Reserve Bank of India
Q. Which one of the following is a modem form of currency?
✅ Correct Answer: (D)
Paper notes