BANKING AFFAIRS

Detailed explanation-1: -Issuing of coins is not a function of the Central Bank.

Detailed explanation-2: -In most modern economies, money creation is controlled by the central banks. Money issued by central banks is termed base money.

Detailed explanation-3: -Out of the given options, conduct of monetary policy and lending to the commercial banking system are two common functions of the RBI.

Detailed explanation-4: -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.

Detailed explanation-5: -A central bank is an independent national authority that conducts monetary policy, regulates banks, and provides financial services.