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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
Which of the following is not a function of the Central Bank?
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.
The main advantage of giving the monopoly right of note issue to the central bank is that it ______.
______ is the main function of central bank.
How is Bank rate altered to correct a depression in an economy?
Who normally keep their deposits in the Central Bank?
The Central Bank is the apex monetary institution of the country. Explain its role of a Banker of the Government.
Explain the banker’s bank function of the Central Bank.
