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
Which function of RBI is indicated by the above image?
The ______ is the central bank of our country which has the authority to print currency notes.
What is meant by clearing house function of the RBI?
______ is the main function of central bank.
Identify which of the following is not the function of the central bank?
Which of the following statements are true?
- The Reserve Bank of India is the central bank of the country.
- All currency notes (except one rupee note) bear the signature of Governor, RBI.
- The objective of the Reserve Bank of India is to earn profit.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Central Bank acts as a banker to the Government.
Reason (R): Except the one rupee note, all other currency notes bear the signature of Governor of RBI.
Discuss the role of the Central Bank as the fiscal agent to the government.
Explain the banker’s bank function of the Central Bank.
- Name the institution that enjoys the monopoly of note issue in India.
- Briefly explain two qualitative methods of credit control adopted by this institution.
