Advertisements
Advertisements
प्रश्न
The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.
विकल्प
The monopoly of note issue
Government’s bank
Clearing house
Developmental
Advertisements
उत्तर
The Clearing house function of the Central bank involves settling claims of Commercial banks through a process of book entries.
Explanation:
For Commercial banks, the Central Bank serves as 'The-Clearing-House.' This means it settles commercial banks' mutual claims through a book-entry process.
APPEARS IN
संबंधित प्रश्न
Briefly explain about Correspondent Banks?
What is a Central Bank?
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
It acts as the bankers' bank.
"A central bank is a bankers' bank." Explain.
What is meant by an overdraft facility given by a commercial bank?
"The central bank is the lender of the last resort." Explain.
______ are of several types, e.g., commercial, central, industrial, merchant, exchange, agricultural, cooperative, postal and indigenous.
Why was EXIM Bank set up in India?
Regional Rural Banks (RRBs) are primarily established to ______.
