Which of the following is NOT another name of the currency issued by the central bank of India?
Show answer & explanation
Correct answer: C
Explanation
Correct Answer:
Option 3: Line of Credit
Explanation:
The currency issued by the Central Bank (RBI) is referred to as High-Powered Money, the Monetary Base, or Reserve Money. These are all different names for the same concept. In contrast, a 'Line of Credit' is a credit facility provided by banks; it is not a type of currency. Therefore, it is not another name for the currency issued by the Central Bank.
Additional Facts:
Option 1: High-Powered Money is a correct term.
Option 2: Reserve Money is a correct term.
Option 3: Correct Answer.
Option 4: Monetary Base is a correct term.
Potential Questions for Upcoming Exams:
Question: When was the RBI established?
Answer: 1935
Question: Who formulates monetary policy?
Answer: RBI
Question: What is money supply?
Answer: Total currency in circulation
Question: What is the Bank Rate?
Answer: The rate determined by the RBI