The currency coins and notes in India__:

are backed by equivalent value of gold kept in RBI

come under a type of Fiat Money

have equivalent intrinsic value of their denomination

counted in both narrow money and broad money figures

Select the correct statements from the codes given below:

Question

Currency coins and notes in India are not backed by gold reserves. India follows a fiat money system where the value of money is not determined by the worth of any commodity backing it.
Yes, Indian currency comes under fiat money, which has no intrinsic value and its worth is dictated by government order.
Indian currency coins and notes do not have equivalent intrinsic value to their denomination. Their value is ascribed by the government.
Yes, currency in circulation is included in both narrow money (M1) and broad money (M3) figures.

GKToday Admin · Accepted Answer

Only 2 & 4

Currency coins and notes in India are not backed by gold reserves. India follows a fiat money system where the value of money is not determined by the worth of any commodity backing it.
Yes, Indian currency comes under fiat money, which has no intrinsic value and its worth is dictated by government order.
Indian currency coins and notes do not have equivalent intrinsic value to their denomination. Their value is ascribed by the government.
Yes, currency in circulation is included in both narrow money (M1) and broad money (M3) figures.

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