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Functions of the Central Bank

Fill in the b...

Question

Fill in the blanks with appropriate alternatives given in the brackets:
Central Bank is the __ of bank credit.
(Creator, manufacturer, controller, supplier)

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Solution

Central Bank is the Controller of bank credit.

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___ acts as the bank of banks.
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___ is the rate at which Central Bank re-discounts bills of exchange from commercial banks.
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1. Central bank has the __________ of note issue. (monopsony/monopoly/duopoly/oligopoly)
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