Question

Which Indian Ocean island country uses the "Rufiyaa" as its official currency for domestic and international transactions?

• A. Sri Lanka
• B. Maldives
• C. Mauritius
• D. Seychelles

Hint:

Be careful not to confuse "Rupee" (used by India, Sri Lanka, Mauritius, Nepal, and Seychelles) with "Rufiyaa" (used exclusively by Maldives) or "Rupiah" (used by Indonesia).
Although they share the same Sanskrit etymological root, they are completely distinct currencies.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
This question is from General Knowledge, focusing on world currencies and the geography of the Indian Ocean Region.
We need to identify which of the listed island nations uses the "Rufiyaa" as its official currency.

Step 2: Key Concept or Approach:
The Maldivian Rufiyaa is the official currency of the Republic of Maldives.
The word "rufiyaa" is derived from the Sanskrit word "rupya", meaning wrought silver, which is also the linguistic root for the Indian rupee.

Step 3: Detailed Explanation:

• Let us analyze the official currencies of the given Indian Ocean island countries to verify our choice:
- Sri Lanka uses the Sri Lankan Rupee (LKR).
- Mauritius uses the Mauritian Rupee (MUR).
- Seychelles uses the Seychellois Rupee (SCR).
- Maldives uses the Maldivian Rufiyaa (MVR).

• The Rufiyaa is subdivided into 100 laari and is issued and regulated by the Maldives Monetary Authority (MMA).

• The Maldives is an archipelagic nation situated in the Indian Ocean, composed of 26 ring-shaped atolls, making it highly dependent on tourism and fishing, where the Rufiyaa is used for all domestic transactions.



Step 4: Final Answer:
The Indian Ocean island country that uses the "Rufiyaa" is Maldives, which corresponds to option (B).