Central Bank and Its Functions
Economics ⇒ Money and Banking
Central Bank and Its Functions starts at 11 and continues till grade 12.
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Define 'Open Market Operations' as conducted by the central bank.
Describe the process by which the central bank issues currency in India.
Describe the role of the central bank in foreign exchange management.
Explain the difference between quantitative and qualitative methods of credit control used by the central bank.
Explain the importance of the central bank in maintaining financial stability in the economy.
Explain the meaning of 'lender of last resort' in the context of central banking.
Explain the role of the central bank as a 'banker to the government'.
Explain the term 'minimum reserve system' in the context of currency issue by the central bank.
Which of the following is a direct instrument of monetary policy? (1) Moral Suasion (2) Open Market Operations (3) Selective Credit Control (4) Margin Requirements
Which of the following is a function of the central bank as a 'banker's bank'? (1) Accepting deposits from the public (2) Providing loans to commercial banks (3) Issuing insurance policies (4) Selling mutual funds
Which of the following is a function of the central bank? (1) Granting loans to the public (2) Issuing currency notes (3) Accepting savings deposits (4) Providing insurance services
Which of the following is a qualitative method of credit control? (1) Open Market Operations (2) Selective Credit Control (3) Bank Rate Policy (4) Cash Reserve Ratio
The central bank acts as a clearing house for ________.
The central bank acts as a custodian of ________ reserves.
The central bank controls credit in the economy through ________ policy.
The central bank is also known as the ________ of note issue.
True or False: The central bank accepts deposits from the general public.
True or False: The central bank acts as the banker to the government.
True or False: The central bank can directly control the interest rates charged by commercial banks.
True or False: The central bank can directly lend to the general public.
