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प्रश्न
Give two reasons why the central banks enjoy monopoly of note issue.
Explain currency authority function of the Central Bank.
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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
Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.
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.
What is meant by clearing house function of the RBI?
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?
The Central Bank is the apex monetary institution of the country. Explain its role of a Banker of the Government.
Discuss the role of the Central Bank as the fiscal agent to the government.
