Explain, with reason, whether you Agree or Disagree with the following statement :
Central Bank is a profit making institution ?
I do not agree with the statement that Central Bank is a profit making institution. It is because Central Bank is Apex monetary institution of the country which control and regulate supply of money and banking in the interest of an economy and welfare of the society. Central Bank as "a bank of bankers. Its duty is to control the monetary base and through the control of high powered money to control the community's supply of money." "Nations today can successfully control either depression or inflation by fiscal and monetary measures." – Paul A. Samuelson.
Following are the function of Central Bank and it does not include Profit making.
Functions of Central Bank
1) Issue of Currency Notes
2) Banker to the Government
3) Banker's Bank
4) Controller of Credit
5) Development and Other Functions
6) Custodian of Foreign Currency Reserves of the country and Maintenance of Exchange Rate Stability.
Concept: Definition - Central Bank
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