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Which of the following is the function of a Central Bank?
Issue of notes
Banker to the Government and Banks
Supply and Control of money
All of these
- Option 1: Issue of notes
- Central banks are responsible for issuing and regulating the national currency.
- They ensure the currency remains stable and meets economic demands.
- Option 2: Banker to the Government and Banks
- Central banks manage the accounts of the government, facilitating receipts and payments.
- They also provide banking services to commercial banks, supporting the banking system.
- Option 3: Supply and Control of money
- Central banks regulate money supply by adjusting interest rates and conducting open market operations.
- Their monetary policy aims to maintain economic stability and growth.
- Option 4: All of these (Correct Answer)
- Central banks perform all the functions listed above.
- They are crucial for the stable functioning of an economy.
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