Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI's balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct?
Select an option to reveal the answer and explanation.
A medium Economy multiple-choice question from UPSC Prelims 2024. Attempt it above, then check the correct answer and detailed explanation below.
Show correct answer & explanation
Correct answer: D. 1, 2 and 4
The digital rupee (CBDC) is a sovereign currency issued by the RBI (1), appears as a liability on the RBI's balance sheet (2), and is freely convertible against bank money and cash at par (4). It is not inflation-proof by design (3 wrong). So option (d).
Practise writing a full Economy answer and get it graded by our AI examiner — free.
More Economy questions
With reference to the Digital India Land Records Modernisation Programme, consider the following statements: 1. To implement the scheme, the Central Government provides 100% funding. 2. Under the Scheme, Cadastral Maps are digitised. 3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India. Which of the statements given above are correct?
Consider the following statements: Statement-I: India does not import apples from the United States of America. Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority. Which one of the following is correct in respect of the above statements?
Consider the following countries: 1. Italy 2. Japan 3. Nigeria 4. South Korea 5. South Africa Which of the above countries are frequently mentioned in the media for their low birth rates, or ageing population or declining population?
Consider the following statements: 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct?
Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?
Consider the following statements: Statement-I: If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment. Statement-II: The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements?