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Question
What is a central bank?
Solution
The Central Bank is an apex bank which regulates all the activities of commercial banks and other financial institutions of an economy.
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RELATED QUESTIONS
The central bank can increase availability of credit by: (Choose the correct alternative)
(a) Raising repo rate
(b) Raising reverse repo rate
(c) Buying government securities
(d) Selling government securities
Fill in the blank using proper alternative given in the bracket:
......................... is the apex body of the monetary and banking system of the nation’s economy.
Explain, with reason, whether you Agree or Disagree with the following statement :
Central Bank is a profit making institution ?
State whether the following statements are True or False:
Central Bank acts as a lender of the last resort.
State whether the following statement is True or False with reason:
Central Bank works for profit.
Fill in the blanks with appropriate alternatives given in the bracket.
To increase credit creation Central Bank __________ the debentures.
Fill in the blank with appropriate alternatives given below
____________ is the apex body of the monetary and banking systems of the nation's economy.
Match the following:
| Group A | Group B |
| 1. Central bank | a. Quantitative measure of credit |
| 2. Clearing house | b. Apex banking institution |
| 3. Credit control | c. Deliberate buying and selling of government securities |
| 4. Direct action | d. Selective method of credit control |
| 5. Open market operations | e. Central bank |
| f. Government | |
| g. S.L.R. (Statutory Liquidity Ratio) |
Define or Explain the following concept.
Prof. Samuelson's definition of Central Bank
Define or Explain the following concept.
Open Market Operation
Define or Explain the following concept.
Cash Reserve Ratio
Give reason or explain.
As a banker to the government, the Central Bank transfers government funds.
Write short note on:
Definition of a Central Bank
State with reason whether you agree or disagree with the following statement.
Central Bank is a profit-making institution.
Central Bank is an ______.
