Question

Answer the following questions.
"Central Bank of the country has the monopoly of Note Issue" Explain.

Answer 1

Central bank is an apex bank that controls the entire banking system of a country. Central bank has monopoly rights of issuing notes of all denominations. This is called the currency authority function of central banks. All notes issued by central bank acts as unlimited legal tender in the country. due to this central bank is also known as the bank of note issue.