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Question
Give two major functions of the central bank of our country.
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Solution
The Reserve Bank of India’s key functions are:
- Monopoly of Note Issue.
- Banker, Agent, or Advisor to the Government.
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RELATED QUESTIONS
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.
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Based on the above explain the following.
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Who normally keep their deposits in the Central Bank?
Explain the following function of the central bank of a country.
Developmental functions.
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