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प्रश्न
How does the central bank act as a lender as the last resort?
Explain the function of the Central Bank (The Reserve Bank of India) as a lender of the last resort.
Why is the central bank referred to as the "lender of the last resort"?
With reference to the Central Bank, explain the following:
Lender of the last resort
उत्तर
- As a banker to the banks, the central bank (The Reserve Bank of India) acts as the lender of the last resort. In case the commercial banks fail to meet their financial requirements from other sources, they can, as a last resort, approach to the central bank for loans.
- The central bank gives loans to such banks through discounting of approved securities and bills of exchange.
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संबंधित प्रश्न
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.
Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
The Central bank is having the authority to regulate the amount of money supply in the economy.
Based on the above explain the following.
- Credit Rationing
- CRR
- Regulation of Margin Requirements
- Bank Rate
Central bank is the ______ of the country's foreign currency reserves.
Give two major functions of the central bank of our country.
What is meant by clearing house function of the RBI?
Explain the 'Clearing House Function' of the Central Bank?
The main advantage of giving the monopoly right of note issue to the central bank is that it ______.
______ is the main function of central bank.
Which of the following statements are true?
- The Reserve Bank of India is the central bank of the country.
- All currency notes (except one rupee note) bear the signature of Governor, RBI.
- The objective of the Reserve Bank of India is to earn profit.
Identify the function of RBI as indicated by the following image.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Central Bank acts as a banker to the Government.
Reason (R): Except the one rupee note, all other currency notes bear the signature of Governor of RBI.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Reserve Bank of India creates credit.
Reason (R): Reserve Bank of India is known as a bank of note issue.
The Central Bank is the apex monetary institution of the country. Explain its role of a Banker of the Government.
Discuss the role of the Central Bank as the fiscal agent to the government.
