Advertisements
Advertisements
Question
The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.
Options
The monopoly of note issue
Government’s bank
Clearing house
Developmental
Solution
The Clearing house function of the Central bank involves settling claims of Commercial banks through a process of book entries.
Explanation:
For Commercial banks, the Central Bank serves as 'The-Clearing-House.' This means it settles commercial banks' mutual claims through a book-entry process.
APPEARS IN
RELATED QUESTIONS
Reserve Bank of India cannot accept deposits from public.
State with Reasons whether the following statement TRUE or FALSE.
Current account is suitable for salaried people.
The central bank of a country serves as the leader of the banking system and the moneymarket.
______ is the apex institution of the country's monetary and banking structure where as ______ is one of the organs of the money market.
"A central bank is a bankers' bank." Explain.
Distinguish between saving account and current account.
Explain main functions of commercial bank.
______ is a Banker's Bank.
Why was EXIM Bank set up in India?
Explain the four functions of the Reserve Bank of India.
