Question

Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements carefully and choose the correct option:
Assertion (A): Rupees is accepted as medium of exchange in India.
Reason (R): The World Bank legalises the use of rupee as a medium of payment in India.

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A).
• B. Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
• C. (A) is correct, but (R) is incorrect.
• D. (A) is incorrect, but (R) is correct.

Hint:

Currency legal status is conferred by national governments, not global institutions like the World Bank.

Answer 1

The Correct Option is C

The Indian Rupee's acceptance stems from the Indian government's authorization and the Reserve Bank of India's (RBI) recognition. The World Bank does not endorse currencies for internal use. Thus, the initial statement holds, though the provided justification is flawed.