Advertisements
Advertisements
प्रश्न
Give two reasons why the central banks enjoy monopoly of note issue.
Explain currency authority function of the Central Bank.
Advertisements
उत्तर
The central bank is the sole authority for the issue of currency in the country. All the currency issued by the central bank is its monetary liability. Notes issued by the central bank are circulated as legal tender money.
Two Reasons:
The monopoly of issuing notes promotes efficiency in the financial system because:
- It brings about uniformity in currency note circulation.
- It gives the Central Bank direct control over one of the components of the money supply.
संबंधित प्रश्न
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
Give two major functions of the central bank of our country.
The main advantage of giving the monopoly right of note issue to the central bank is that it ______.
______ is the main function of central bank.
The central bank acts as ______.
Which of the following statements are true?
- The Reserve Bank of India is the central bank of the country.
- All currency notes (except one rupee note) bear the signature of Governor, RBI.
- The objective of the Reserve Bank of India is to earn profit.
How does the central bank act as a lender as the last resort?
Explain the following function of the central bank of a country.
Developmental functions.
Discuss the role of the Central Bank as the fiscal agent to the government.
- Name the institution that enjoys the monopoly of note issue in India.
- Briefly explain two qualitative methods of credit control adopted by this institution.
