Advertisements
Advertisements
Question
______ is the main function of central bank.
Options
Credit creation
Accepting deposits from public
Note issue
None of these
Advertisements
Solution
Note issue is the main function of central bank.
Explanation:
One of the primary functions of a central bank is the issue of currency notes. The central bank has the authority to issue the country's currency, ensuring that the money supply is stable and controlled.
RELATED QUESTIONS
The Central bank is having the authority to regulate the amount of money supply in the economy.
Based on the above explain the following.
- Credit Rationing
- CRR
- Regulation of Margin Requirements
- Bank Rate
The ______ is the central bank of our country which has the authority to print currency notes.
Give two major functions of the central bank of our country.
The main advantage of giving the monopoly right of note issue to the central bank is that it ______.
Which of the following is not a function of a commercial 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.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Reserve Bank of India creates credit.
Reason (R): Reserve Bank of India is known as a bank of note issue.
How does the central bank act as a lender as the last resort?
Give two reasons why the central banks enjoy monopoly of note issue.
How is Bank rate altered to correct a depression in an economy?
Who normally keep their deposits in the Central Bank?
Explain the banker’s bank function of the Central Bank.
Name the institution that enjoys the monopoly of note issue in India.
