Question

Why is the Central Bank called the Government’s Bank?

Answer 1

1. The central bank serves the government as a fiscal agency, banker, and counsellor.
2. On behalf of the government, it sends and receives funds.
3. For the government, it floats and oversees public debt.
4. The central bank advises the government on banking and monetary policy in its capacity as a fiscal agency.
5. Additionally, it represents the government at international conferences on economic and monetary issues.

Thus, the Government’s Bank is the term for a central bank.