Choose the correct option from the options given below:

In which year a Gold standard reserve was formed out of the profits of the coinage of rupees, partly to prevent fluctuations in exchange, partly to meet the expenses incurred, and partly to provide necessary funds in London to purchase silver for coining?

Correct option is B

The Gold Standard Reserve was created in the year 1900 as a part of the process to stabilize the currency system in India during the British colonial period. The profits from the coinage of rupees were utilized to form this reserve. This move was designed to address exchange rate fluctuations and provide necessary funds for the purchase of silver for coining purposes. Additionally, it aimed to mitigate the economic burdens caused by silver depreciation and enhance the stability of the Indian currency. The establishment of this reserve was a significant step towards establishing a more stable monetary system, in line with the global adoption of the gold standard during that period.

Information Booster:
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The Gold Standard Reserve of 1900 was formed during the British Raj, when the rupee was pegged to silver and the British Government aimed to stabilize the currency system by ensuring the backing of the currency with gold. This reserve was particularly important as it helped in addressing the concerns regarding the fluctuating exchange rates and the increasing costs associated with maintaining the currency in circulation.