Question

The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.

पर्याय

• The monopoly of note issue

• Government’s bank

• Clearing house

• Developmental

Answer 1

The Clearing house function of the Central bank involves settling claims of Commercial banks through a process of book entries.

Explanation:

For Commercial banks, the Central Bank serves as 'The-Clearing-House.' This means it settles commercial banks' mutual claims through a book-entry process.