Money and Credit Test - 12

Devaluation of currency means purposeful reduction of one's currency against the other country currency.
For example : Chinese Yuan is devaluated often against US Dollar.
Devaluation of currency is done by a country to have a upper hand in exports.

The coins of Mauryan period manifest that they were cut and clipped for proper weight and adjustments. The coins were struck in conceivable geometric form including round, oval and elliptical. The coins showcased only one symbol and it had been observed that the idea was perhaps taken from the Vedic period. Later the number of symbols increased and the punching devices of these coins had no inscriptions but they bore a number of symbols. The symbols varied from geometrical and floral patterns, with hills, birds, animals, reptiles, human figures and the like. A particular symbol stands for the representation of a particular place or area. Often the flans or planchets of the coins were smaller than the size of the punches. Sometimes, in an attempt to accommodate the complete symbols; they were punched together, one overlapping another. Several symbols were introduced in the ancient Indian coins abut with the commencement period of the Mauryan empire the symbols got a bolder look. The earlier coins with five symbols were a representation of a particular feature. Even silver punch marked coins were also issued during this age. Silver coins were found in four denominations viz. 'pana', 'ardha-pana', 'pada' and 'asta-bhaga' or 'ardhapadika'. These coins were issued from the mints of the Mauryan Empire as per 'Arthasastra'.

Kushanas were the first to introduce gold currencies in India around 1st century A.D. 

First one to issue gold coins were Kushanas under the rule of Wema (Kadphises 2)

Formal sector credit in India includes loans from banks and cooperatives. RBI supervises their functions of giving loans. Rich urban households depend largely on formal sources of credit. Lower rate of interest on loans is charged as compared to informal sources of credit.

Modern currency is not made of precious metal such as gold, silver and copper. And unlike grain and cattle, they are neither of every day use.
The modern currency is without any use of its own. Still, it is accepted as a medium of exchange because the currency is authorized by the government of the country

In order to to ensure stability of the exchange rate, the rupee is pegged to a basket of currencies.

This is because India trades with multiple countries which have different currencies.

The following securities might be considered as collateral:

1. Original sale deed of the property.
2. Documents to indicate the borrower's banks deposits.
3. Other assets owned by the borrower.
   

Besant is a medieval term for a gold coin. Medievally originally it meant the gold coins produced by the government of the Byzantine Empire. The word was derived from the Greek Byzantium. Later in the medieval era among the Latins the scope of the word was expanded to gold coins produced by Arabic governments. Standardized Roman currency was used throughout the Roman Empire. Important Roman gold and silver coins were continued into the Middle Ages . Ancient and early medieval coins in theory had the value of their metal content, although there have been many instances throughout history of the metal content of coins being debased, so that the inferior coins were worth less in metal than their face value.