Home » General Knowledge » Indian Economy

History of Indian currency: Identify the year when paper currency first started in India. Context: Consider the statutory beginning of government-issued paper money in British India. Choose the correct year.

Difficulty: Easy

1835
1861
1905
1935

Correct Answer: 1861

Explanation:

Given data

Topic: Introduction of paper currency in India.
Task: Pick the year of formal commencement.

Concept / Approach
The Paper Currency Act, 1861 vested the Government of India with the monopoly of note issue, marking the formal start of government paper currency in India.

Option analysis
1835: Pre-dates the Act; not the formal start. 1861: Correct; year of the Paper Currency Act. 1905/1935: Important years in monetary history (e.g., 1935 RBI Act era), but not the start of paper currency.

Final Answer
1861.

← Previous Question Next Question→

More Questions from Indian Economy

Bank nationalization in 1969: State the number of major commercial banks that were nationalized that year. Context: July 1969 was a landmark in Indian banking reforms. Choose the correct number.
Agricultural research governance: Identify the apex body that formulates plans and coordinates research in agriculture and allied fields in India. Context: Consider the institutional architecture overseeing agricultural R&D and extension coordination. Choose the correct apex organization.
Price index interpretation (base year 1960): If the current price index is approximately 330, what does this imply? Context: Treat 1960 as base = 100 and interpret the relative level of prices today. Choose the correct interpretation.
Rural vs. urban income disparity in India: Identify which factors explain why average rural incomes are generally lower than average urban incomes. Many farmers are illiterate and have limited exposure to scientific/modern agricultural practices. Prices of primary products (farm/raw goods) are typically lower than prices of manufactured/finished products. Investment in agriculture has historically been low compared to investment in industry. Choose the correct combination of statements.
Indian economy — gross domestic saving rate: Choose the current broad range for India’s average gross domestic savings as a share of GDP. Treat “range” as percentage points of GDP (approximate macro indicator). Choose the correct range.
Banking reforms in India: In the second round of nationalization of commercial banks, how many banks were nationalized? Provide the exact count of banks nationalized in the second phase (1980). Choose the correct number.
Foreign Direct Investment (FDI) into India over the last decade: Identify the sector that has attracted the highest FDI inflows. Consider broad sectoral groupings used in official statistics (e.g., services, computer software & hardware, manufacturing, telecom). Choose the correct sector.
Monetary policy — required ratios: The ratio that banks must maintain between their cash holdings (cash with RBI + cash in hand) and their liabilities/size of balance sheet. Identify the standard term used for this mandated cash ratio in India. Choose the correct option.
Telecom sector — FDI policy change: The ceiling on Foreign Direct Investment (FDI) in telecom was raised from 74% to what new limit? Answer in percentage of equity permitted for foreign investment. Choose the correct value.
Formulation of fiscal policy in India: Identify the authority primarily responsible for framing the Union Government’s fiscal policy (taxation, expenditure, budgeting). Choose the correct institution.

Discussion & Comments

No comments yet. Be the first to comment!

Join Discussion