Functions of central bank, Describe functions of central bank? Answer : (A) Issue

Functions of central bank

Describe functions of central bank?

Answer:

(A) Issue of currency: Central bank is the only authority for the issue of currency in country.

(B) Banker to the government (both central and state government). It carries out all banking business of the government and as well manages the public debt.

(C) Bankers bank and supervisor: It keeps a portion of cash reserves of banks, lends them short term funds and gives centralized clearing facilities.

(D) Lender of last resort: The central bank has to give funds to commercial banks as and whenever they require financial help.

View Complete Question

Related Questions in Macroeconomics

Q : Marginal utility of good at its maximum

Can someone help me in finding out the right answer from the given options. The consumer maximizes utility whenever the spending patterns cause: (1) Marginal utility of each and every good to be at its maximum value. (2) Marginal utilities of each and every goods cons

Q : Are government budget scarcities always

‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’

Q : Define Demand schedule What is Demand

What is Demand schedule and how it is associated to demand curve?

Q : Example of microeconomic issue Hey

Hey friends i need your support for justify the problem that is given below: If the United Auto Workers Union acquires benefit package and a large wage from GM, Ford, and Chrysler which increases the cost of U.S. cars, it is a

Q : Resolving disequilibrium between the

Assume that you consume bananas and apples, and the marginal utility of the last apple consumed is 6 times the marginal utility of last banana consumed. Though, the price of apples is only 3 times the price of bananas. This disequilibrium among the two goods can be re

Q : Stage of the business cycle What stage

What stage of the business cycle is our economy experiencing at present time? proof your answer.

Q : Effect of flood on demand Mold which

Mold which destroyed the hamburger crop following a flood would be most probable to slash the demands for: (1) Fried chicken with mashed potatoes and gravy. (2) Soda pop and water. (3) Cucumbers, carrots, and egg plant. (4) Mustard and ketchup. (5) Tofu and sushi.

Q : Transfer of wealth problem The transfer

The transfer of wealth from developed countries to oil exporting countries (abbreviated as OPEC) which followed sky-rocketing oil prices in the year 1970s points out that the price elasticity of demand for oil was: (i) Unitary. (ii) Relatively high. (

Q : Impact on income due to price of excess

What is the impact on income or output and price of excess demand (Inflationary gap)? Answer: In the condition of excess demand (that is Inflationary gap) there wil

Q : Reduction in quantity When equilibrium

When equilibrium moves from point a to point b in the figure shown below, the only market experiencing a reduction in quantity supplied is illustrated in: (1) Panel A. (2) Panel B. (3) Panel C. (4) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1448358 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930685
Asked

3,689

Active Tutors

1448358

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment