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प्रश्न
Give two reasons why the central banks enjoy monopoly of note issue.
Explain currency authority function of the Central Bank.
उत्तर
The central bank is the sole authority for the issue of currency in the country. All the currency issued by the central bank is its monetary liability. Notes issued by the central bank are circulated as legal tender money.
Two Reasons:
The monopoly of issuing notes promotes efficiency in the financial system because:
- It brings about uniformity in currency note circulation.
- It gives the Central Bank direct control over one of the components of the money supply.
संबंधित प्रश्न
Which of the following is not a function of the Central Bank?
- In the realm of economic development, how does the role of entrepreneurs impact the overall growth and stability of a nation.
Which function of RBI is indicated by the above image?
Give two major functions of the central bank of our country.
Explain the 'Clearing House Function' of the Central Bank?
______ 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.
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.
Name the institution that enjoys the monopoly of note issue in India.
