wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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

Open in App
Solution

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.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
High-Powered Money and Money Creation
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon