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Question
State with Reasons whether the following statement is TRUE or FALSE:
Central bank (RBI) connot accept deposit from the public.
Options
True
False
Solution
Central bank (RBI) cannot accept deposit from the public- True
Explanation:
The above statement is correct. The RBI cannot accept deposits from the general public; it is the commercial banks that accept deposits from the public. The main function of the central bank is to maintain economic stability in the country by formulating monetary policies.
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