Which of the following is NOT true about the central bank?

It deals directly with commercial banks and the public

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It has full control over the money supply

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It is the custodian of reserves

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It is the sole authority to issue currency notes

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Solution

The correct option is A
It deals directly with commercial banks and the public

The central bank only deals with commercial banks, and not directly with the public. Other statements are correct.

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Similar questions

Commercial banks do not have the note-issuing authority, but they do contribute to the money supply in the economy. Comment.

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