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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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Q. Fill in the blanks with appropriate alternatives given in the brackets:
___ acts as the bank of banks.
(Central Bank, Commercial Bank, Foreign Bank, State Bank)

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___ is the apex body of the monetary and banking system of the nations's economy. (commercial bank, Central Bank, Government, Co-operative bank)

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___ is the rate at which Central Bank re-discounts bills of exchange from commercial banks.
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The Central Bank acts as a ___ of cash reserves of commercial banks in the country. (head, leader, custodian, locker)

Q. Fill in the blanks with appropriate alternatives given in the brackets.

1. Central bank has the __________ of note issue. (monopsony/monopoly/duopoly/oligopoly)
2. The central bank acts as a ____________ of cash reserves of the country. (head/ leader/ custodian/ locker)
3. Bank Rate is also called as __________ rate. (rediscount/ market/ general/ exchange)
4. ____________ is the apex body of the monetary and banking systems of the nation's economy. (Commercial bank/ Central bank/ Government/ Co-operative bank)
5. Reserve Bank of India was established in _____________. (1937/ 1939/ 1935/ 1934)

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