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Explain, with Reason, Whether You Agree Or Disagree with the Following Statement :Central Bank is a Profit Making Institution ? - Economics

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प्रश्न

Explain, with reason, whether you Agree or Disagree with the following statement :

Central Bank is a profit making institution ?

उत्तर

I do not agree with the statement that Central Bank is a profit making institution. It is because Central Bank is Apex monetary institution of the country which control and regulate supply of money and banking in the interest of an economy and welfare of the society. Central Bank as "a bank of bankers. Its duty is to control the monetary base and through the control of high powered money to control the community's supply of money." "Nations today can successfully control either depression or inflation by fiscal and monetary measures." – Paul A. Samuelson.
Following are the function of Central Bank and it does not include Profit making.
Functions of Central Bank
1)       Issue of Currency Notes    
2)       Banker to the Government
3)       Banker's Bank
4)       Controller of Credit
5)       Development and Other Functions
6)       Custodian of Foreign Currency Reserves of the country and Maintenance of Exchange Rate Stability.
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Definition - Central Bank
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2014-2015 (October)

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संबंधित प्रश्न

Meaning and Definition of Central bank?


There is no difference between the Central bank and a commercial bank.


The central bank can increase availability of credit by: (Choose the correct alternative)

(a) Raising repo rate

(b) Raising reverse repo rate

(c) Buying government securities

(d) Selling government securities


Explain the role of the Reserve Bank of India as the “lender of last resort”.


What is a central bank? 


Fill in the blank using proper alternative given in the bracket:

......................... is the apex body of the monetary and banking system of the nation’s economy.


Give reason or explain the following.

Cash reserve ratio (CRR) affects the lending capacity of banks.


Match the following Group ‘A’ with Group ‘B’

Group A Group B
(a) Electricity (1) Inelastic demand
(b) Complementary goods (2) Share brokers
(c) Pension (3) Elastic demand
(d) D - mat account (4) Composite demand
(e) Central Bank 5) Transfer income
  (6) Primary function of Commercial Banks
  (7) ATM facility
 
(8) Apex banking institution

Give reason or explain the following statement:

Central Bank acts as a lender of the last resort.


Fill in the blanks using proper alternatives given in the bracket 

____________ bank has the monopoly of note issue. 


Define or explain the concept of Lender of the last resort .


State whether the following statement is True or False with reason:

Central Bank works for profit.


Rewrite the following sentences by using proper substitute given in the bracket: 

__________ has monopoly to issue the currency notes. 


Fill in the blanks with appropriate alternatives given in the bracket.  

To increase credit creation Central Bank __________ the debentures. 


Fill in the blank with appropriate alternatives given below

Reserve Bank of India was established in _____________.


Match the following: 

Group A Group B
1. Central bank a. Quantitative measure of credit
2. Clearing house   b. Apex banking institution
3. Credit control    c. Deliberate buying and selling of government securities
4. Direct action  d. Selective method of credit control
5. Open market operations  e. Central bank
  f. Government
  g. S.L.R. (Statutory Liquidity Ratio)

Define or Explain the following concept.

 Open Market Operation 


Define or Explain the following concept.

Moral suasion


Define or Explain the following concept.

Cash Reserve Ratio 


Give reason or explain.

As a banker to the government, the Central Bank transfers government funds. 


Give reason or explain.

A Central Bank may take 'Direct Action' against the defaulting commercial banks. 


Write short note on:

Definition of a Central Bank 


State with reason whether you agree or disagree with the following statement.

Central Bank is a profit-making institution. 


Fill in the blank using appropriate alternatives given below

The e - banking facility is provided through _________


In order to encourage investment in the economy, the Central Bank may ______. 


Choose the Correct Answer.

The Central bank of India is ______


Briefly explain about Central Bank.


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