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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
Explain the functions of the RBI with respect to the following:
- Custodian of foreign exchange reserves.
- Monopoly of note issue.
- Clearing house facility.
- Banker and fiscal agent to the government.
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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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