Which of th following system is followed by the Reserve Bank of India for issuing currency? Option 1: Proportionate system. Option 2: Minimum Reserve System. Option 3: Simple Deposit System. Option 4: Fixed fiduciary issue System.

The answer is 'Minimum Reserve System.'. View full solution:

CUET Economics - Which of th following system is followed by the Reserve Bank of India for issuing currency? | PYQs + Solutions

CUET Economics 2025 30 May Shift 1

Macro

Medium

Proportionate system.

Minimum Reserve System.

Simple Deposit System.

Fixed fiduciary issue System.

✅ Correct Option: 2

Related questions:

28 May Shift 1

The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration:

21st May Shift 1

Match List-I with List-II

List-I	List-II
(A) Lender of last resort	(I) 1/Cash reserve ratio
(B) Money multiplier	(II) Buying and selling government securities
(C) Open market operations	(III) RBI
(D) $M^d_t$ = kPY	(IV) Transaction demand for money is positively related to the real income of an economy.

Choose the correct answer from the options given below:

28 May Shift 1

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below: