Maharashtra State Board course HSC Science (General) 12th Board Exam
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Fill in the Blank with Appropriate Alternatives Given Below the Central Bank Acts as a ____________ of Cash Reserves of the Country. - Economics

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Question

Fill in the blank with appropriate alternatives given below

The central bank acts as a ____________ of cash reserves of the country.

  • head

  • leader

  • custodian

  • locker

Solution

The central bank acts as a custodian of cash reserves of the country.

Explanation: Individuals deposit their money in commercial banks. The commercial banks in turn are legally bound to deposit a certain portion of these deposits with the Central Bank. Thus, the Central Bank acts as a custodian (keeper) of the cash reserves of the country.

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APPEARS IN

 Micheal Vaz Solution for Micheal Vaz Class 12 Economics (2019 to Current)
Chapter 13: Central Banking
Exercise | Q: 1.2 | Page no. 121
Solution Fill in the Blank with Appropriate Alternatives Given Below the Central Bank Acts as a ____________ of Cash Reserves of the Country. Concept: Monetary Function of Central Bank.
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