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The term "Paper Gold" is associated with-
Question

The term "Paper Gold" is associated with-

A.

Special facility of the Reserve Bank of India

B.

Deficit Budgeting

C.

Currencies still in gold standard

D.

The assets transferred by the International Monetary Fund

Correct option is D

· The term paper gold refers to the property transferred by the International Monetary Fund. Sovereign gold bonds are in a way paper gold because you are given the facility to invest in gold by writing on paper.
· The value of the bond is determined by its weight in gold. That means the price of the bond will be the same as the price of physical gold in the market.
· This rate is decided according to the price per gram of gold.

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