Q. Consider the following statements: 

1. In Minimum Reserve System, RBI had to keep a minimum reserve of Gold worth Rs. 115 Crores and rest in Indian Rupees. 
2. The Minimum Requirement of Foreign Securities was diluted when Minimum Reserve System was launched. 

Answer: Both of them are incorrect
Notes: The correct answer is "Both of them are incorrect." 1. The Minimum Reserve System, introduced in 1956, required the Reserve Bank of India (RBI) to maintain a minimum reserve of gold and foreign securities worth Rs. 200 Crores, not just gold worth Rs. 115 Crores. 2. The Minimum Reserve System did not dilute the requirement for foreign securities. it actually emphasized maintaining a balance of gold and foreign currencies to ensure monetary stability. Thus, both statements are incorrect.