Advertisements
Advertisements
प्रश्न
Give two reasons why the central banks enjoy monopoly of note issue.
Explain currency authority function of the Central Bank.
Advertisements
उत्तर
The central bank is the sole authority for the issue of currency in the country. All the currency issued by the central bank is its monetary liability. Notes issued by the central bank are circulated as legal tender money.
Two Reasons:
The monopoly of issuing notes promotes efficiency in the financial system because:
- It brings about uniformity in currency note circulation.
- It gives the Central Bank direct control over one of the components of the money supply.
संबंधित प्रश्न
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
Which function of RBI is indicated by the above image?
Central bank is the ______ of the country's foreign currency reserves.
Which of the following is/are the function(s) of central bank.
Give two major functions of the central bank of our country.
Explain the 'Clearing House Function' of the central bank.
______ is the main function of central bank.
Identify which of the following is not the function of the central bank?
Who normally keep their deposits in the Central Bank?
Discuss the role of the Central Bank as the fiscal agent to the government.
