The central bank performs the following functions :

A. Banker to the public

B. Banker to the banks

C. Banker to the government

D. Lender of the last resort

E. Issues one rupee coins

Choose the correct answer from the options given below :

B, C and D only

The correct answer is option (2) : B, C and D only

Explanation:

• Banker to the banks (B): The central bank acts as a banker to commercial banks by providing them with various banking services such as maintaining their accounts, providing liquidity through various instruments, and acting as a lender of last resort during financial crises. Correct.

• Banker to the government (C): The central bank manages the government's accounts, provides short-term credit to the government, manages the government's public debt, and facilitates government transactions.Correct

• Lender of the last resort (D): During financial emergencies or crises, the central bank provides liquidity and financial assistance to banks and financial institutions to maintain stability in the financial system. Correct

The other options are incorrect:

• Banker to the public (A): This refers to commercial banks rather than the central bank.

• Issues one rupee coins (E):Reserve bank of India has the sole right to issue currency notes of various denominations except one rupee note under Section 22 of Reserve bank of India Act. The one rupee note and coins are issued by the ministry of finance.