Question

State with reasons whether you agree or disagree with the following statements.
Issuing currency is the only one function of the Central Bank.

Answer 1

No, I do not agree with this statement.

The Central Bank has many functions with regards to the economy, government, commercial banks and general public:

(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,

(8) Protection of Depositor’s Interest.