Question

Central Bank is a profit seeking institution.

• A. True
• B. False

Answer 1

The correct option is B False

False.

Central bank is an apex bank that controls the entire banking system of a country. It not a profit making association because the main objective of central bank is not profit making, it only generates profit for its survival and the other expenditures are entirely met through the country's fund. Therefore, central bank is a regulatory institution and not a profit seeking institution.