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 : Determinants of transaction demand.

With the help of graph discuss the determinants of transaction demand.

Q : Define Macro Economics Macro Economics

Macro Economics: Macro economics studies the economy as an entire.

Q : Where is macroeconomics mainly focus I

I need a good answer on the topic of Economic problems. Please give me your suggestion for problem which is specified below: Macroeconomics focuses mainly on: (i) inflation, unemployment, economic growth, and other aggregate econom

Q : Define Tax revenue Tax revenue : Tax

Tax revenue: Tax revenue is the revenue which occurs on account of taxes levied by government. Taxes are of two kinds: direct taxes and indirect taxes. Direct taxes are such taxes levied instantly on the property and income of person’s income ta

Q : Value of total receipts of government

Determine the value of total receipts of government budget when budget deficit is Rs 2,000 crores and the net expenses is Rs 3,000 crores.

Q : What is Supply schedule What is Supply

What is Supply schedule and how it is related to supply curve?

Q : Estimating rational income How will you

How will you treat the given in estimating rational income of India? Provide reasons for your answer. (i) The value of bonus shares received by the shareholders of a company.(ii) Interest received on loan pro

Q : IMF? In saying that the present system

In saying that the present system of floating exchange rates is managed we mean that: IMF officials determine exchange rates on a day-to-day basis. countries that allow their exchange rate to move freely will lose their borrowing privileges with the IMF. the value of any IMF member's currency

Q : Assignment Task 1 – Commercial banks in

Task 1 – Commercial banks in United Economy have total deposits of AED 300 billion. Their reserves are AED 15 billion, two- thirds of which are with the Central Bank as deposits. There are AED 30 billion notes outside the banks. There are no coins! Calculate- a) The monetary base. b) The bank

Q : Would inflation targeting be a good

Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment?

Discover Q & A

Leading Solution Library

Avail More Than 1428073 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1941751
Asked

3,689

Active Tutors

1428073

Questions
Answered

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

Submit Assignment