Unit 4 Ch 3 : Money and Credit — Social Studies STD 10 — Question
CBSE BoardEnglish MediumSTD 10Social StudiesUnit 4 Ch 3 : Money and Credit3 Marks
Question
Look at a 10 rupee note. What is written on top? Can you explain this statement?
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Answer
The following words are written on the top of a 10 rupee note:
Reserve Bank Of India.
Guaranteed by the Central Government of India.
I promise to pay the bearer the sum of Ten Rupee.
A 10 rupee note is acceptable as a medium of exchange because it is authorized by the government of India. In India, Reserve Bank of India issues currency notes on behalf of the central government. The statement means that the currency is authorized or guaranteed by the Central Government. That is, Indian law legalizes the use of rupee as a medium of payment that can not be refused in setting transaction in India.
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