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UPSC Prelims 2024 Paper-I 📅 16 Jun, 2024

Consider the following statements in respect of the digital rupee:
1. It is a sovereign currency issued by the Reserve Bank of India RBI in alignment with its monetary policy.
2. It appears as a liability on the RBI balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct?

A
1 and 2 only
B
1 and 3 only
C
2 and 4 only
D
1, 2 and 4
Result Summary
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UPSC Prelims
2024 • 16 Jun, 2024 • Paper-I
Consider the following statements in respect of the digital rupee:
1. It is a sovereign currency issued by the Reserve Bank of India RBI in alignment with its monetary policy.
2. It appears as a liability on the RBI balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct?
Correct Answer
1, 2 and 4
Economy: Digital Currency.Context: CBDC.Details: Statements 1, 2, and 4 are correct. The Digital Rupee CBDC is a sovereign currency representing a direct liabil......
Ref/Book : UPSC Prelims 2024
Ref. Subject Economy
Chapter -
Ref. Topic Digital Currency
Pg. No -
💡 Analysis & Explanation
Economy ▼
Digital Currency.
Context ▼
CBDC.
Details ▼
Statements 1, 2, and 4 are correct. The Digital Rupee CBDC is a sovereign currency representing a direct liability on the central bank balance sheet, and it is perfectly convertible into paper currency. Statement 3 is incorrect; like regular fiat currency, it is not intrinsically insured or immune against inflation.
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