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Question
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.
Options
Both A and R are true and R is the correct explanation of A.
Both A and R are true and R is not the correct explanation of A.
A is true but R is false.
A is false but R is true.
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Solution
Both A and R are true and R is not the correct explanation of A.
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RELATED QUESTIONS
Central bank is the ______ of the country's foreign currency reserves.
Give two major functions of the central bank of our country.
Explain the 'Clearing House Function' of the central 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.
Give two reasons why the central banks enjoy monopoly of note issue.
Who normally keep their deposits in the Central Bank?
Discuss the role of the Central Bank as the fiscal agent to the government.
Explain the banker’s bank function of the Central Bank.
Name the institution that enjoys the monopoly of note issue in India.
