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प्रश्न
The central bank of a country is the banker's bank. Justify for or against by giving two reasons.
उत्तर १
For:
- Lender of Last Resort: The central bank provides emergency funding to commercial banks experiencing liquidity difficulties, ensuring the stability of the banking system.
- Regulation and supervision: It supervises and regulates commercial banks by establishing norms and guidelines to ensure financial stability and public trust in the banking system.
उत्तर २
The central bank functions as the government's banker, agent, and advisor. It handles payments and receipts on behalf of the government, similar to a regular bank. As the government's agent in financial matters, the central bank offers advice on monetary and banking issues.
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संबंधित प्रश्न
With reference to the Central Bank, explain the following:
- Monopoly of note issue
- Lender of the last resort.
Why is central bank called as a ‘lender of last resort’ for a commercial bank?
What is a Central Bank?
______ acts as a banker, advisor and agent to the Central and State Governments.
Which of the following statements is true?
______ is the main source of money supply in an economy.
Identify the correctly matched pair of items in column A to that of Column B:
| column A | column B |
| 1. Function of a Central bank | (a) Lending money to public |
| 2. Function of Government | (b) Issuing currency notes |
| 3. Function of a Central bank | (c) Control of credit |
| 4. Function of Government | (d) Creation of credit |
The apex bank which controls, regulates and supervises the activities of commercial bank is the ______.
Describe any two functions of the Central Bank.
Bring out the importance of a central bank by making special reference to the functions it performs.
