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The central bank acts as ______. - Economic Applications

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प्रश्न

The central bank acts as ______.

विकल्प

  • Banker's bank

  • Banker to government

  • Both Banker's bank and Banker to government

  • Neither Banker's bank nor Banker to government

MCQ
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उत्तर

Both Banker's bank and Banker to government

Explanation:

The central bank, such as the Reserve Bank of India, performs both of these functions:

  1. Banker's bank: The central bank serves as a banker to commercial banks by lending, accepting deposits, and clearing transactions.
  2. Banker to the government: The central bank also serves as the government's banker, managing its finances, making loans, and handling public debt.
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Functions of a Central Bank
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 9: Central Banks - QUESTIONS [पृष्ठ २१२]

APPEARS IN

गोयल ब्रदर्स प्रकाशन Economic Applications [English] Class 10 ICSE
अध्याय 9 Central Banks
QUESTIONS | Q 10. | पृष्ठ २१२
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 8 Central Bank
Exercise | Q 10. | पृष्ठ १५७

संबंधित प्रश्न

Which of the following is not a function of the Central Bank?


Explain the functions of the RBI with respect to the following:

  1. Custodian of foreign exchange reserves.
  2. Monopoly of note issue.
  3. Clearing house facility.
  4. Banker and fiscal agent to the government.

Which function of RBI is indicated by the above image?


The Central bank is having the authority to regulate the amount of money supply in the economy.

Based on the above explain the following.

  1. Credit Rationing
  2. CRR
  3. Regulation of Margin Requirements
  4. Bank Rate

Which of the following is/are the function(s) of central bank.


The ______ is the central bank of our country which has the authority to print currency notes.


______ is the main function of central bank.


Identify which of the following is not the function of the central bank? 


Which of the following statements are true?

  1. The Reserve Bank of India is the central bank of the country.
  2. All currency notes (except one rupee note) bear the signature of Governor, RBI.
  3. The objective of the Reserve Bank of India is to earn profit.

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Central Bank acts as a banker to the Government.

Reason (R): Except the one rupee note, all other currency notes bear the signature of Governor of RBI.


How does the central bank act as a lender as the last resort?


Give two reasons why the central banks enjoy monopoly of note issue.


Mention two ways in which the Reserve Bank of India assists the commercial banks.


How is Bank rate altered to correct a depression in an economy? 


Who normally keep their deposits in the Central Bank?


Explain the following function of the central bank of a country.

Developmental functions.


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