Question

Descaibe the function of central bank and
Commercial banks in India.​

Answer 1

Answer:

Apart from this, the central bank formulates and implements fiscal and monetary policies to regulate the supply of money in the market and control inflation. (iii) Custodian of cash reserves of commercial banks: ADVERTISEMENTS: Implies that the central bank takes care of the cash reserves of commercial banks.

Answer 2

Answer:

Implies that central bank helps in controlling the financial markets Money market deals in short term credit and capital market deals in long term credit. The central bankmaintains the country's economic growth by controlling the activities of these markets.