Answer: Option [D]In 1957, the decimal system of currency was introduced in India. The value of the pound itself was unchanged by decimalisation.) The first decimal coins – the five pence (5p) and ten pence (10p) — were introduced in 1968 in the run-up to decimalisation in order to familiarise the public with the new system. The “decimal coins” are the currently circulating coins in India.
Answer: Option [A]The correct answer is Lowering bank rate. When banks want to borrow long term funds from RBI, bank rate is the interest rate which RBI charges to them. Increase in the bank rate will be useful to control inflation. The bank rate is not used to control money supply these days.
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Which of these statements is/are correct ?
Answer: Option [A]The correct answer is In respect of Current Account of Balance of Payments. The rupee has been convertible on the current account since 1994, meaning it can be changed freely into foreign currency for purposes like trade-related expenses. Presently, India has current account convertibility. This means one can import and export goods or receive or make payments for services rendered. However, investments and borrowings are restricted.
Answer: Option [B]Devaluation of currency by a country is meant to lead to
- Promotion of import substitution
- Expansion of export trade
Devaluation is the decision to reduce the value of a currency in a fixed exchange rate. A devaluation means that the value of the currency falls. Domestic residents will find imports and foreign travel more expensive.
Answer: Option [C]Hard Currency is defined as currency traded in foreign exchange market for which demands is persistently relative to the supply.
