Question

sharing of formal banking sector in rural credit system true ya false​

Answer 1

Answer:

False.

Central bank is an apex bank that controls the entire banking system of a country. It is the sole agency of note issuing and controls the supply of money in the economy. It serves as the banker of the government and manages foreign exchange of the government. Therefore, the main function of the central bank is to control of credit in the economy and not create it. It is the commercial bank that deals in the creation of credit in the economy.