The Monetary Authority in India, viz Reserve Bank of India is bound to maintain a reserve against the notes issued, Whatever may be the mount. This system is called as __________ A. Minimum Reserve System B. Proportional Reserve System C. Maximum Fiduciary Issue system D. Simple deposit system E. None of the Above

The Monetary Authority in India, viz Reserve Bank of India is bound to maintain a reserve against the notes issued, Whatever may be the mount. This system is called as __________ A. Minimum Reserve System B. Proportional Reserve System C. Maximum Fiduciary Issue system D. Simple deposit system E. None of the Above
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A. Minimum Reserve System Explanation:  The RBI follows a minimum reserve system in the note issue. Initially, it used to keep 40 per cent of gold reserves in its total assets.
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