Question

Give reason or Explain.
Central bank has the sole power of issuing currency notes.

Answer 1

A central bank is an apex bank that controls the entire banking system of a country. The central bank has monopoly rights of issuing notes. This is called the currency authority function of central banks. All notes issued by central bank acts as unlimited legal tender in the country. Therefore, the central bank has the sole power of issuing currency notes in the country.