Question

Central bank provide short-term finance to business concerns by discounting their bills of exchange, promissory notes and hundies.

Options

• True

• False

Answer 1

False

Explanation:

The statement is false because commercial banks, not the central bank, provide short-term finance to business concerns by discounting bills of exchange, promissory notes and hundies. The central bank mainly regulates the banking system, controls credit and acts as the banker to the government and commercial banks.