Question

The _________ is the apex body of the monetary and banking system of the nation's economy.

• A. Commercial bank
• B. Central bank
• C. Government
• D. Co-operative bank

Answer 1

The correct option is B Central bank

Central bank is an apex institution of the monetary and banking system of a nation's economy as it regulates and controls the entire banking system and monetary market of a country. It is the sole agency of note-issuing and controls the supply of money in the economy. It serves as the banker of the government and manages the foreign exchange of the government.

Hence, option (B) is the correct answer.