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Question

Which currency is known as ‘vehicle currency’?

The correct answer is
None of the above

Understanding 'Vehicle Currency'

A 'vehicle currency' is a dominant currency extensively used in international trade and financial transactions. It serves as an intermediary for payments when the currencies of the involved parties are not easily convertible or when a stable, widely accepted currency is preferred.

Analyzing Currency Options for 'Vehicle Currency'

Key currencies like the US Dollar (USD) and the Euro (EUR) frequently function as vehicle currencies due to their global significance and stability.

  • Euro (EUR): While a major international currency and used in many global transactions, it is one of several significant currencies, not exclusively identified as the vehicle currency.
  • Yen (JPY): Generally holds a less prominent role as a primary vehicle currency compared to the USD or EUR.
  • Pound (GBP): Though historically important, its status as a leading vehicle currency is less pronounced today than the USD or EUR.

The US Dollar is most commonly recognized as the quintessential vehicle currency. Since the USD is absent from the provided options, and the question asks for the currency specifically known as 'vehicle currency', the listed choices are not the definitive answer.

Conclusion

Given that the most recognized vehicle currency (USD) is not listed, and the other options (Euro, Yen, Pound) function as vehicle currencies but aren't singularly identified as the vehicle currency in the context often implied by the term, 'None of the above' is the appropriate selection.

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Important Questions from Money and Banking

  1. Match List I with List II :

    List I 

    Indian Notes (New Currency)

    List II 

    Pictures

    (A) ₹10(I) Ellora Caves
    (B) ₹100(II) Konark, Sun Temple
    (C) ₹500(III) Rani Ki Vav
    (D) ₹20(IV) Red Fort

    Choose the correct answer from the options given below :

  2. In which year was the Reserve Bank of India established? 

  3. In which year was the 'Reserve Bank of India' established?
  4. Which of the following is NOT a component of the Fiscal Policy in India?
  5. What is the real interest rate on a Credit Card loan bearing 24% interest per year, if the rate of inflation is 10%?
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