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      Question

      What is the significance of the RBI-Maldives Monetary

      Authority (MMA) MoU on local currency usage?
      A Allows only Indian companies to operate in the Maldives Correct Answer Incorrect Answer
      B Facilitates INR-MVR trade and reduces settlement costs Correct Answer Incorrect Answer
      C Replaces USD with INR for global transactions Correct Answer Incorrect Answer
      D Establishes a bilateral tax-free trade system Correct Answer Incorrect Answer
      E Implements cryptocurrency-based settlement Correct Answer Incorrect Answer

      Solution

      The MoU allows trade settlements in INR and MVR, enhancing financial efficiency and reducing reliance on third-party currencies like USD.

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