In India, money creating sector are:
In India, money creating sector are:
(a) Banking System
(b) Government of the country
(c) Both (a) and (b)
(d) None of these
Anurag Pathak Changed status to publish December 15, 2023
Ans – (c)
Explanation:-
In India Government and Banking systems are the money-creating sector.
The central bank (Reserve Bank of India) creates and issues paper notes of different denominations of ₹ 2,000, 500, 200, 100, etc.
The central government mints the coins of denominations ₹ 10, 5, 2, 1, etc but these coins are issued by the Reserve Bank of India.
Such money created is also called high-powered money.
Anurag Pathak Changed status to publish December 15, 2023
