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Question
Fill in the blank with appropriate alternatives given below
The central bank acts as a ____________ of cash reserves of the country.
Options
head
leader
custodian
locker
Solution
The central bank acts as a custodian of cash reserves of the country.
Explanation: Individuals deposit their money in commercial banks. The commercial banks in turn are legally bound to deposit a certain portion of these deposits with the Central Bank. Thus, the Central Bank acts as a custodian (keeper) of the cash reserves of the country.
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