Which of the following is/are the function(s) of central bank?

Question

KollegeApply · Accepted Answer

Banker’s bank Explanation: The Central Bank (such as the Reserve Bank of India) serves as a “Banker’s Bank” by regulating commercial banks, holding their statutory and providing financial assistance as a lender of last resort. The remaining possibilities are inaccurate since interacting with the general public, such as offering overdrafts, receiving daily deposits, and awarding short- or medium-term retail loans, is the primary function of commercial banks, not central banks.

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