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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
Which of the following is not a function of the Central Bank?
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 ______ is the central bank of our country which has the authority to print currency notes.
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 ______.
Identify which of the following is not the function of the central bank?
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.
Give two reasons why the central banks enjoy monopoly of note issue.
Mention two ways in which the Reserve Bank of India assists the commercial banks.
Who normally keep their deposits in the Central Bank?
The Central Bank is the apex monetary institution of the country. Explain its role of a Banker of the Government.
Explain the following function of the central bank of a country.
Developmental functions.
Discuss the role of the Central Bank as the fiscal agent to the government.
Explain the banker's bank function of the Central Bank.
