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प्रश्न
"A central bank is a bankers' bank." Explain.
"The central bank is a banker's bank." Comment.
उत्तर
- The central bank functions as a banker for the country's commercial banks.
- It serves as the lender of last resort, providing funds to commercial banks through loan advances and bill rediscounting.
- Commercial banks are required to keep a cash reserve with the central bank so as to control credit in the country.
- The central bank advises commercial banks on matters relating to their business.
Notes
Students can refer to the provided solutions based on their preferred marks.
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संबंधित प्रश्न
Any ‘five types’ of banks.
Distinguish between the following:
Current account & Recurring deposit account
State with Reasons whether the following statement is TRUE or FALSE.
Overdraft facility is given to saving account holders.
State with Reasons whether the following statement TRUE or FALSE.
Current account is suitable for salaried people.
Explain the types of banks?
Give the meaning of Commercial Banks?
Mention the purposes of Agricultural and Cooperative banks?
Distinguish between the Central Bank and the Commercial Bank.
What is a Central Bank?
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
Public Banks are the banks which are ______.
It acts as the bankers' bank.
It carries out the country's monetary policy.
Name the central bank of our country.
What is meant by an overdraft facility given by a commercial bank?
Give two agency functions of commercial banks.
Explain main functions of commercial bank.
What are the important functions of Central bank? Which of these functions are more important in a country like India?
______ are of several types, e.g., commercial, central, industrial, merchant, exchange, agricultural, cooperative, postal and indigenous.
______ is a Banker's Bank.
