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प्रश्न
"A central bank is a bankers' bank." Explain.
"The central bank is a banker's bank." Comment.
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उत्तर
- The central bank functions as a banker for the country's commercial banks.
- It serves as the lender of last resort, providing funds to commercial banks through loan advances and bill rediscounting.
- Commercial banks are required to keep a cash reserve with the central bank so as to control credit in the country.
- The central bank advises commercial banks on matters relating to their business.
Notes
Students can refer to the provided solutions based on their preferred marks.
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संबंधित प्रश्न
State with Reasons whether the following statement is TRUE or FALSE:
Central bank (RBI) connot accept deposit from the public.
Explain the types of banks?
What do you mean by Industrial Banks?
What are Foreign Banks?
The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.
Distinguish between the Central Bank and the Commercial Bank.
What is a Central Bank?
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
It acts as the bankers' bank.
It carries out the country's monetary policy.
Name the central bank of our country.
Name the largest commercial bank of India.
What is a commercial bank?
Give two agency functions of commercial banks.
What is meant by the central bank of a country?
Describe the advantages of opening a bank account.
What is a Banker’s Cheque?
The ______ of a country serves as the leader of the banking system and the money market.
Explain the four functions of the Reserve Bank of India.
