Which of the following statements are true? 1. RBI follows Minimum Reserve System for issuing paper currency note. 2. Under Section 22 of the RBI Act, the RBI issues notes. 3. The bill which does not require any acceptance is called Promissory Note. 4. Bank deposit is a non-marketable security.

The correct answer is: C. 1, 3 and 4

• Statement 1 is true. The RBI follows the Minimum Reserve System for issuing paper currency notes. Under this system, the RBI is required to maintain a minimum reserve of gold and foreign
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  exchange against the total value of the currency notes it issues.
• Statement 2 is true. Under Section 22 of the RBI Act, the RBI is the sole authority to issue notes in India.
• Statement 3 is false. A bill which does not require any acceptance is called a Banker’s Acceptance. A promissory note
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  is a written promise to pay a certain amount of money to a specified person or entity on a specified date.
• Statement 4 is true. Bank deposit is a non-marketable security because it cannot be traded on a secondary market.

I hope this helps! Let me know if you have any other questions.