ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lender of last resort
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Managing monetary policy
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Controlling money supply
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Accepting deposits
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Detailed explanation-1: -Therefore, accepting deposits and advancing loans to the public is not the function of the Reserve Bank of India.
Detailed explanation-2: -Issuing of coins is not a function of the Central Bank.
Detailed explanation-3: -Accepts deposit : The bank takes deposits in the form of saving, current, and fixed deposits. The surplus balances collected from the firm and individuals are lent to the temporary requirements of the commercial transactions.
Detailed explanation-4: -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-5: -Functions of Commercial Banks:-Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills.-Secondary functions include issuing letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc.