Question

Mention four functions of a Central Bank.

Answer 1

Eight major functions of central bank in an economy are as follows:

(1) Bank of Issue,

(2) Banker, Agent and Advisor to Government,

(3) Custodian of Cash Reserves,

(4) Custodian of Foreign Balances,

(5) Lender of Last Resort,

(6) Clearing House,

(7) Controller of Credit, and

(8) Protection of Depositor’s Interest.