Fill in the blank with appropriate alternatives given below The central bank acts as a ____________ of cash reserves of the country.

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KollegeApply · Accepted Answer

The central bank acts as a custodian of cash reserves of the country. Explanation: Individuals deposit their money in commercial banks. The commercial banks in turn are legally bound to deposit a certain portion of these deposits with the Central Bank. Thus, the Central Bank acts as a custodian (keeper) of the cash reserves of the country.

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