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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.
RELATED QUESTIONS
Which of the following is not a function of the Central Bank?
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.

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