Advertisements
Advertisements
Question
Write short note on:
Definition of a Central Bank
Solution
The Central Bank is the apex institution of a country's monetary system. It regulates and controls the activities of all the commercial banks and other financial institutions of the country. It plays a pivotal role in the organisation and development of a sound monetary and financial system in an economy. In India, the Reserve Bank of India (RBI) is the central bank. The following are some of the definitions of central bank. According to Prof. Paul. A Samuelson “Central bank is a bank of bankers. It’s duty is to control the monetary base and through the control of high powered money to control the community’s supply of money” According to Prof. Hawtrey “ Central Bank is that which the lender of last resort”
APPEARS IN
RELATED QUESTIONS
The RBI was nationalised in the year 1935.
Meaning and Definition of Central bank?
There is no difference between the Central bank and a commercial bank.
Explain the role of the Reserve Bank of India as the “lender of last resort”.
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.
Give reason or explain the following.
Cash reserve ratio (CRR) affects the lending capacity of banks.
Match the following Group ‘A’ with Group ‘B’
| Group A | Group B |
| (a) Electricity | (1) Inelastic demand |
| (b) Complementary goods | (2) Share brokers |
| (c) Pension | (3) Elastic demand |
| (d) D - mat account | (4) Composite demand |
| (e) Central Bank | 5) Transfer income |
| (6) Primary function of Commercial Banks | |
| (7) ATM facility | |
|
(8) Apex banking institution
|
Give reason or explain the following statement:
Central Bank acts as a lender of the last resort.
Match the following:
| Group A | Group B |
| a. Demand and Price | (1) Interest |
| b. Stock | (2) Stock |
| c. Reward of Capital | (3) Reserve Bank of India |
| d. Unemployment allowance | (4) Bank of India |
| e. Central Bank | (5) Direct relation |
| (6) Potential Supply | |
| (7) Transfer Income | |
| (8) Inverse relation |
Explain, with reason, whether you Agree or Disagree with the following statement :
Central Bank is a profit making institution ?
Fill in the blanks using proper alternatives given in the bracket
____________ bank has the monopoly of note issue.
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.
Rewrite the following sentences by using proper substitute given in the bracket:
__________ has monopoly to issue the currency notes.
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.
Fill in the blank with appropriate alternatives given below
Reserve Bank of India was established in _____________.
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.
Open Market Operation
Define or Explain the following concept.
Moral suasion
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.
Give reason or explain.
A Central Bank may take 'Direct Action' against the defaulting commercial banks.
State with reason whether you agree or disagree with the following statement.
Central Bank is a profit-making institution.
Fill in the blank using appropriate alternatives given below
The e - banking facility is provided through _________
In order to encourage investment in the economy, the Central Bank may ______.
Choose the Correct Answer.
The Central bank of India is ______
Choose the Correct Answer.
Which of the following is not a function of a central bank?
Briefly explain about Central Bank.
