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Money and Banking — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking3 Marks
Question
'Indian paper currency is inconvertible'. Discuss.
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Answer

The special feature of Indian monetary system is that it has adopted inconvertible paper currency system. Paper currency is not convertible into precious metal (gold), i.e. backing it. Thus, currency is said to be inconvertible.

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