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प्रश्न
Which of the following is/are the function(s) of central bank.
पर्याय
Banker's bank
Lender of the last resort
Receive deposits from the public and business firms.
Provide short-term and medium-term loans to customers.
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उत्तर
Banker's bank and lender of the last resort
Explanation:
- The central bank acts as a banker to all the commercial banks in the country.
- Whenever a commercial bank needs financial assistance, it may borrow from other commercial banks. However, other commercial banks may not be able to provide funds to the bank in need. In this way the central bank acts as the lender of the last resort.
APPEARS IN
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.
Central bank is the ______ of the country's foreign currency reserves.
Explain the 'Clearing House Function' of the central bank.
______ is the main function of central bank.
Identify which of the following is not the function of the central bank?
How does the central bank act as a lender as the last resort?
How is Bank rate altered to correct a depression in an economy?
Explain the following function of the central bank of a country.
Developmental functions.
Explain the banker’s bank function of the Central Bank.
