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| 1. |
Explain any 3 main features of modern Indian currency? |
| Answer» A floating exchange rate, which frees monetary policy from the need to defend foreign exchange reserves).A government which has a sovereign monopoly over the provision its own, fiat currency.Under a fiat currency system, the monetary unit defined by the government has no intrinsic worth. The government makes no commitment to convert it, for example, into gold as it was under the gold standard. The viability of the fiat currency is ensured by the fact that it is the only unit which is acceptable for payment of taxes and other financial demands of the government. | |