Q.6. Define a Central Bank.
CENTRAL BANK
A banking system of a country without
a central bank at the top in like a human body without a head. In the words of
R.P. Keene
“central bank is an institution charged with the responsibility of
managing the entire monitory and banking affairs of the country in the nation’s
interest.”
The Central bank is generally
recognized as a bank which constitutes the apex of its monitory structure,
controls, directs and equalities the activities of other banks operating in the
economy. A central bank has direct dealings with the governments and other
banks. It is a separate branch of banking having distinct functions quite
different from other banks. It operates not for profit sake. But with an
objective of bring in economic prosperity to the people and ensuring economic
stability in the country.
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