One of the function of a central bank is that it is "Banker to the government". Which of the following comes under the head?

• Lender of the last resort
• Granting loans and advances to the Cnetre and State Governments
• Advisor to the government
• Agent to the government

2, 3 and 4

When we use the term "Banker to the government", it means RBI assist the government in every possible way. The following functions are performed:

1. Carrying out all the banking business of the government
2. Granting loans and advances
3. Managing public debt
4. Acting as the advisor and agent to the government

Lender of the last resort: When short term assistance is required by the commercial banks they come to RBI as their last resort.