Question

Explain the bankers bank function of central bank

Answer 1

central bank keeps the cash balances of commercial bank and issues loans to them on requirements is the same manner as the commercial bank do for its customers . A central bank has almost the same relation with other commercial bank of the country that the commercial bank have with the common public . that is called central bank is also bankers bank ..


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Answer 2

Hello !

Functions of Central Banks

1. Bank of Issue

2. Banker to the Government

3. Banker’s Bank and Supervisor.

4. Controller of credit.

5. Lender of last resort

6. Custodian of foreign exchange reserves

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