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प्रश्न
“The central bank is a banker’s bank.” Explain.
“The central bank is a banker’s bank.” Comment.
“The central bank is a banker’s bank.” Justify for and against by giving suitable reasons.
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उत्तर
- The central bank functions as a banker for the country's commercial banks.
- It serves as the lender of last resort, providing funds to commercial banks through loan advances and bill rediscounting.
- Commercial banks are required to keep a cash reserve with the central bank so as to control credit in the country.
- The central bank advises commercial banks on matters relating to their business.
Notes
Students can refer to the provided solutions based on their preferred marks.
संबंधित प्रश्न
Distinguish between the following:
Current account & Recurring deposit account
State with Reasons whether the following statement is TRUE or FALSE.
Overdraft facility is given to saving account holders.
Mention two differences between the Central Bank and a Commercial Bank.
Choose the Correct Answer.
Foreign banks are begun their operation since ______
What do you mean by Industrial Banks?
What are the objectives involved in Regional Rural Banks?
What is a Central Bank?
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
Public Banks are the banks which are ______.
What is meant by an overdraft facility given by a commercial bank?
What is a commercial bank?
Explain main functions of commercial bank.
What is meant by the central bank of a country?
The ______ of a country serves as the leader of the banking system and the money market.
Why was EXIM Bank set up in India?
Which type of bank provides only basic banking services and is not allowed to give loans?
Small Finance Banks are mainly designed to serve ______.
Which type of bank is most closely associated with foreign trade finance and foreign exchange services?
How do banks act as financial intermediaries in an economy?
