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.

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.