Question

Which of these is not a function of a central bank?

Options

• Accepting deposits from public at large

• Issuing currency notes

• Banker to banks

• Maintaining foreign exchange reserves

Answer 1

Accepting deposits from public at large

Explanation:

• Accepting deposits from the general public is a function of commercial banks, not the central bank.
• The central bank primarily issues currency, acts as a banker to banks, and manages foreign exchange reserves.