Which of the following statements is/are true about currency notes?

i. They do not have intrinsic value.

ii. They can be called fiat money.

iii. They are not legal tenders.

This question was previously asked in
SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 11 Aug, 2023 Shift 1)
View all SSC CHSL Papers >
  1. Only ii
  2. Only i
  3. Only i and ii
  4. Only ii and iii

Answer (Detailed Solution Below)

Option 3 : Only i and ii
Free
SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 02 Aug 2023 Shift 1)
2.6 Lakh Users
100 Questions 200 Marks 60 Mins

Detailed Solution

Download Solution PDF

The correct answer is Only i and ii. Key Points

  • Currency notes do not have intrinsic value, meaning they are not valuable in and of themselves, but rather are valuable because they are widely accepted as a medium of exchange.
  • Currency notes are often referred to as fiat money because their value is derived from government decree rather than being backed by a physical commodity such as gold or silver.
  • Currency notes are legal tender, meaning they must be accepted as payment for debts and taxes.

Additional Information

  • The official currency of India is the rupee.
  • One rupee is divided into one hundred paise.
  • The Reserve Bank of India is in charge of currency issuance.
  • The Reserve Bank of India Act, of 1934, provides the Reserve Bank of India with the authority to manage money in India.
Latest SSC CHSL Updates

Last updated on May 28, 2025

-> The SSC has released the SSC CHSL exam calendar for various exams including CHSL 2025 Recruitment. As per the calendar, SSC CHSL Application process will be active from 23rd June 2025 to 18th July 2025. 

-> The Exam Date for the SSC CHSL 2025 will be from 8th September 2025 to 18th September, 2025. 

-> The SSC CHSL is conducted to recruit candidates for various posts such as Postal Assistant, Lower Divisional Clerks, Court Clerk, Sorting Assistants, Data Entry Operators, etc. under the Central Government. 

-> The SSC CHSL Selection Process consists of a Computer Based Exam (Tier I & Tier II).

-> To enhance your preparation for the exam, practice important questions from SSC CHSL Previous Year Papers. Also, attempt SSC CHSL Mock Test.  

Get Free Access Now
Hot Links: teen patti royal - 3 patti teen patti joy teen patti lotus