BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one of the following is not a function of Central Bank in a country?
A
Credit Control
B
Managing Money Supply
C
Credit Creation
D
Regulation of Foreign Exchange
Explanation: 

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

Detailed explanation-2: -This process cannot be implemented by the central bank alone. For this, they require the help of commercial banks and their reserves. Commercial banks perform the function of credit creation in an economy. Therefore, the money that is created by commercial banks is known as credit money.

Detailed explanation-3: -Central banks are responsible for overseeing the monetary system for a nation (or group of nations), along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.

Detailed explanation-4: -Facilitating import of goods is not a primary function of a bank.

Detailed explanation-5: -Out of the given options, conduct of monetary policy and lending to the commercial banking system are two common functions of the RBI.

There is 1 question to complete.