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"central bank of the country has the monopoly of note issue, " explain?,
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The central bank is the bank of issue. It has the monopoly of note issue.
Notes issued by it circulate as legal tender money. It has its issue department which issues notes and coins to commercial banks.
Coins are manufactured in the government mint but they are put into circulation through the central bank.
The central bank is required by law to keep a certain amount of gold and foreign securities against the issue of notes.
The monopoly of issuing notes vested in the central bank ensures uniformity in the notes issued which helps in facilitating exchange and trade within the country.
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