Question

What are the functions of a central Bank?​

Answer 1

Answer:

Eight major functions of central bank in an economy are as follows: (1) Bank of Issue, (2) Banker, Agent and Advisor to Government, (3) Custodian of Cash Reserves, (4) Custodian of Foreign Balances, (5) Lender of Last Resort, (6) Clearing House, (7) Controller of Credit, and (8) Protection of Depositor's Interest.

Explanation:

Answer 2

Answer:

1.The main function of a central bank is to act as governor of the machinery of credit in order to secure stability of prices.

2.It regulates the volume of credit and currency, pumping in more money when market is dry of cash, and pumping out money when there is excess of credit.

3.In India RBI have two departments, namely. Issue department and Banking department.