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प्रश्न
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
विकल्प
Commercial banks
Central government
Central bank
Ministry of finance
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उत्तर
Central bank
Explanation:
- The currency issue is the responsibility of a country's central bank (in India, the Reserve Bank of India).
- The central bank guarantees that citizens have faith in the currency by maintaining its honesty and stability.
- The central bank's currency is government-backed, but the central bank is responsible for issuing it, not commercial banks or the Ministry of Finance.
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संबंधित प्रश्न
Answer the following question.
Explain, using a numerical example, how a reduction in reserve deposit ratio, affects the credit creation power of the banking system.
Define Credit Multiplier.
The ______ creation is called credit creation.
What do you mean by credit creation by commercial banks?
If legal reserve ratio is 20%, the value of money multiplier would be ______.
What is meant by credit creation?
What is meant by primary deposits?
Why are the banks required to keep only a fraction of deposits as cash reserves?
The deposit multiplier formula is ______.
"Loans create deposits" means banks grant loans by ______.
