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Question
The central bank of a country serves as the leader of the banking system and the money market.
Options
Commercial Bank
Central Bank
Specialised Bank
None of these
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Solution
Central Bank
Explanation:
The central bank is the apex institution that controls and regulates the entire banking system of a country. It manages the money supply, issues currency, supervises commercial banks, and maintains financial stability. It also acts as the leader of the money market by formulating monetary policies and guiding the overall economy.
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