Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Which of the following option is NOT a feature of central bank?

Options:

It is an apex bank which regulate money supply with the help of fiscal policies.

It does not deal with public directly.

It issues currency

None of the above

Correct Answer:

It is an apex bank which regulate money supply with the help of fiscal policies.

Explanation:

Reserve bank of India is the apex institution which monitors the money supply and creates a balance in the economy to avoid any economic fluctuations. With the help of MONETARY policies, it either increases or decreases the money supply to control inflation or any other problem.