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State with Reason Whether You Agree Or Disagree with the Following Statement. Central Bank is a Profit-making Institution. - Economics

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Question

State with reason whether you agree or disagree with the following statement.

Central Bank is a profit-making institution. 

Short Note

Solution

No, this statement is not correct. This is because the main objective of the Central Bank is to regulate and control the activities of all the commercial banks and other financial institutions of the country. It also plays a pivotal role in the organisation and development of a sound monetary and financial system in an economy. However, profit making is not the objective of the Central Bank.

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Definition - Central Bank
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Chapter 13: Central Banking - Exercise 5 [Page 122]

APPEARS IN

Micheal Vaz Economics [English] 12 Standard HSC
Chapter 13 Central Banking
Exercise 5 | Q 1.4 | Page 122

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