Question

Read the passage and answer the The Reserve Bank of India was established in the year 1935. The Central office of RBI is in Mumbai. The main function of the Reserve Bank of India is to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India. It generally operates the currency and credit system of the country to its advantage. In this passage, ‘Bank Notes’ refers to

• A. goods and services
• B. currency notes
• C. circulars sent by the Banks
• D. file notes

Answer 1

The Correct Option is B

"Bank Notes" in the passage refers to the money issued by the Reserve Bank of India. 
- "Currency notes" is the correct term for paper money issued by the central bank. 
- The other options do not relate to the concept of money in circulation. 
"Bank Notes" refers to paper money issued by central banks, not documents or other items.