The central bank acts as ______.

Question

KollegeApply · Accepted Answer

Both Banker's bank and Banker to government Explanation: The central bank, such as the Reserve Bank of India, performs both of these functions: 1. Banker's bank: The central bank serves as a banker to commercial banks by lending, accepting deposits, and clearing transactions. 2. Banker to the government: The central bank also serves as the government's banker, managing its finances, making loans, and handling public debt.

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