Advertisement Remove all ads

Explain the ‘Bank of Issue’ Function of Central Bank. - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

Explain the ‘bank of issue’ function of central bank.

Explain the "Bank of Issue function" of the central bank

Advertisement Remove all ads

Solution

Function of Central Bank– Bank of Issue:-

The central bank of a country has an exclusive right of issuing notes. Under the original Act, there was provision for issuing currency notes according to the proportional reserve system. In India, the RBI can print or issue any volume of currency or notes by keeping a gold reserve worth Rs 115 crore and foreign exchange worth Rs 85 crore. These currencies are called legal tender money.

Concept: Function of Central bank - Bank of Issue
  Is there an error in this question or solution?
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×