Match List-I with List-II.List-IList-II(A) Currency notes(I) Issued b…

Match List-I with List-II.

List-I	List-II
(A) Currency notes	(I) Issued by the Government of India
(B) Coins	(II) Have a fixed period to maturity
(C) Demand deposits	(III) Issued by the Reserve Bank of India
(D) Fixed deposits	(IV) Payable by the bank on demand, but not legal tender

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

In India, money consists of currency (notes and coins) and bank deposits. Each has its own issuer or feature.

List-I	List-II	Reason
(A) Currency notes	(III) Issued by the Reserve Bank of India	The RBI is the monetary authority and issues currency notes.
(B) Coins	(I) Issued by the Government of India	Coins are issued by the Government of India, not by the RBI.
(C) Demand deposits	(IV) Payable by the bank on demand, but not legal tender	They are paid on demand, but a cheque drawn on them can be refused.
(D) Fixed deposits	(II) Have a fixed period to maturity	That is why they are called time deposits.

NCERT (2026-27): “THE SUPPLY OF MONEY : VARIOUS MEASURES In a modern economy money consists mainly of currency notes and coins issued by the monetary authority of the country. In India currency notes are issued by the Reserve Bank of India (RBI), which is the monetary authority in India. However, coins are issued by the Government of India. Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions. Such deposits are called demand deposits as they are payable by the bank on demand from the account-holder. Other deposits, e.g. fixed deposits, have a fixed period to maturity and are referred to as time deposits.”

“… Cheques drawn on savings or current accounts, however, can be refused by anyone as a mode of payment. Hence, demand deposits are not legal tenders.”