{"id":92198,"date":"2025-06-01T11:16:51","date_gmt":"2025-06-01T11:16:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92198"},"modified":"2025-06-01T11:16:51","modified_gmt":"2025-06-01T11:16:51","slug":"consider-the-following-statements-in-respect-of-the-digital-rupee","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/","title":{"rendered":"Consider the following statements in respect of the digital rupee :"},"content":{"rendered":"<p>Consider the following statements in respect of the digital rupee :<\/p>\n<ul>\n<li>1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.<\/li>\n<li>2. It appears as a liability on the RBI&#8217;s balance sheet.<\/li>\n<li>3. It is insured against inflation by its very design.<\/li>\n<li>4. It is freely convertible against commercial bank money and cash.<\/li>\n<\/ul>\n<p>Which of the statements given above are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1 and 3 only&#8221; option3=&#8221;2 and 4 only&#8221; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option4&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2024<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2024.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2024\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">The correct answer is D, including statements 1, 2, and 4.<\/section>\n<section id=\"pyq-key-points\">Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India&#8217;s sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives.<br \/>\nStatement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank.<br \/>\nStatement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee.<br \/>\nStatement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.<\/section>\n<section id=\"pyq-additional-information\">The RBI has launched pilot projects for both wholesale and retail versions of the digital rupee (e\u20b9). CBDCs aim to provide benefits like efficiency, innovation, and financial inclusion, while also raising questions about privacy, security, and potential impact on the banking system.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;s balance sheet. 3. It is insured against inflation by its very design. 4. It is &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements in respect of the digital rupee :\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/#more-92198\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements in respect of the digital rupee :<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1103,1120,1190],"class_list":["post-92198","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1103","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following statements in respect of the digital rupee :<\/title>\n<meta name=\"description\" content=\"The correct answer is D, including statements 1, 2, and 4. Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India&#039;s sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives. Statement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank. Statement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee. Statement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements in respect of the digital rupee :\" \/>\n<meta property=\"og:description\" content=\"The correct answer is D, including statements 1, 2, and 4. Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India&#039;s sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives. Statement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank. Statement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee. Statement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:16:51+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following statements in respect of the digital rupee :","description":"The correct answer is D, including statements 1, 2, and 4. Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India's sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives. Statement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank. Statement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee. Statement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements in respect of the digital rupee :","og_description":"The correct answer is D, including statements 1, 2, and 4. Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India's sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives. Statement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank. Statement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee. Statement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:16:51+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/","name":"Consider the following statements in respect of the digital rupee :","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:16:51+00:00","dateModified":"2025-06-01T11:16:51+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct answer is D, including statements 1, 2, and 4. Statement 1 is correct. The digital rupee (CBDC) is envisioned as a digital form of India's sovereign currency (the Rupee), issued directly by the Reserve Bank of India (RBI) in accordance with its monetary policy objectives. Statement 2 is correct. Similar to physical currency, CBDC represents a direct liability of the central bank (RBI) to the holder. It is essentially a claim on the central bank. Statement 3 is incorrect. The design of the digital rupee does not inherently provide insurance against inflation. Like physical currency, its purchasing power would be subject to macroeconomic factors and inflationary pressures managed by the RBI through monetary policy. Its value is pegged 1:1 with the physical rupee. Statement 4 is correct. As a digital equivalent of physical currency, the digital rupee is intended to be freely convertible with other forms of money, such as commercial bank deposits (commercial bank money) and physical cash.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-respect-of-the-digital-rupee\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"Consider the following statements in respect of the digital rupee :"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=92198"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92198\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=92198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=92198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=92198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}