Advertisements
Advertisements
प्रश्न
State with reason whether you agree or disagree with the following statement.
Central Bank is the Bank of Issue.
उत्तर
Yes, the above statement is true. The Central Bank is the sole entity that can print currency notes. In other words, the central bank of a country has the exclusive authority to issue currency (notes + coins). The currency issued by the central bank is known as 'legal tender money' i.e. the value of such currency is backed by the central bank. Since, issuance of notes is exclusively reserved for the Central Bank, it is said to be the ‘Bank of Issue’.
APPEARS IN
संबंधित प्रश्न
Credit money is created by the Central bank of a country.
Give reasons or explain the following
Central bank acts as a lender of the last resort of commercial banks.
Answer in detail.
Explain the functions of Central Bank.
Choose the correct answer :
Currency rate of India to other currency means _________.
Fill in the blank with appropriate alternatives given below
Central bank has the __________ of note issue.
Fill in the blank with appropriate alternatives given below
The central bank acts as a ____________ of cash reserves of the country.
Define or Explain the following concept.
Central Bank as Bank of Issue
Answer the following question:
How does a Central Bank (for example RBI) transfer funds from one place to another? Illustrate.
State with reason whether you agree or disagree with the following statement.
Central Bank having monopoly of note issue is most appropriate institute of the government.
Give reason or explain the following.
Clearing house facility by central bank Economises the use of cash.
