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Central Bank

Usually a cen...

Question

Usually a central bank has the monopoly to issue notes.

A

True

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B

False

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Solution

The correct option is A True
True.
Central bank is an apex bank that controls and regulates the entire banking system of a country. Central bank has the monopoly rights of issuing notes which is called currency authority function of central banks. All notes issued by central bank are an unlimited legal tender in the country

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Q. Answer the following questions.
"Central Bank of the country has the monopoly of Note Issue" Explain.

Which of the following is not the main reason for giving the monopoly right of note-issue to the central bank?

Q. Fill in the blanks with appropriate alternatives given in the brackets:
In India _____ has the monopoly of note issue.
(Reserve bank of India, Commercial bank, Foreign bank, Co-operative bank)

Q. Fill in the blanks with appropriate alternatives given in the brackets:
Central Bank has the ___ of note issue.
(Monopsony, monopoly, duopoly, oligopoly)

Q. State with reasons whether you agree or disagree with the following statements.

1. Central Bank is the Bank of Issue.
2. A co-operative bank acts as a lender of the last resort.
3. Credit control is the function of the Central Bank of the country.
4. Central Bank is a profit-making institution.
5. Central Bank having monopoly of note issue is most appropriate institute of the government.

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