What is the official currency of Bhutan, which is pegged at par with the Indian Rupee?

The correct answer is the Ngultrum (BTN), the official currency issued and managed by the Royal Monetary Authority of Bhutan. A defining feature of the Ngultrum, and a favourite exam detail, is that it is pegged one-to-one with the Indian Rupee, meaning one Ngultrum always equals one Indian Rupee in value. The Nepalese Rupee is incorrect because it is the distinct currency of Nepal, Bhutan's fellow Himalayan neighbour, and although Nepal's rupee is also historically pegged to the Indian Rupee, it has no circulation or legal status inside Bhutan. The Myanmar Kyat is incorrect because Myanmar lies far to the southeast and has no monetary or peg relationship with either Bhutan or India; it is included here only as a plausible-sounding regional currency name. A frequent exam confusion is students assuming that because the Indian Rupee circulates in Bhutan, India Rupee itself must be the 'official' currency asked about in the question, when in fact Bhutan maintains its own sovereign currency, the Ngultrum, even while allowing INR use domestically; this dual arrangement is unusual and worth remembering precisely because it is unusual. The revision takeaway is a simple pairing: Bhutan issues the Ngultrum, pegged 1:1 to the Indian Rupee, and both currencies are usable within Bhutan, whereas Nepal has its own separately pegged Nepalese Rupee.