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Question
______ is the main function of central bank.
Options
Credit creation
Accepting deposits from public
Note issue
None of these
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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.
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Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
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