Which of the following is not a function of Central Bank ?
It accepts deposits and give loans to people.
Central banks primarily focus on monetary policy, acting as bankers to the government, and issuing currency. Accepting deposits and giving loans is a function of commercial banks, not a central bank's primary role.
It accepts deposits and give loans to people.
✅ Correct Answer: It accepts deposits and give loans to people.
Explanation:
Accepting deposits and giving loans to people is the function of commercial banks, not the Central Bank.
The Central Bank (like RBI in India) performs functions such as:
Controlling money supply
Acting as banker to the government
Issuing currency
It accepts deposits and give loans to people.
The correct answer is:
✅ "It accepts deposits and gives loans to people."
Explanation:
The Central Bank (e.g., RBI in India) performs key macroeconomic functions, but directly accepting deposits or lending to the public is not one of them. This is the role of commercial banks.
Functions of a Central Bank:
Controls money supply (via interest rates, CRR, SLR, etc.).
Banker to the government (manages government accounts, public debt).
Issues currency (sole authority to print money).
Non-Function:
Accepting deposits/giving loans to the public → Handled by retail/commercial banks (e.g., SBI, ICICI), not the Central Bank.
Correct Option: 3 ✅
Important Questions from Economics and Central Problems of Economy
If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.
Which of the following statements are true?
(A) Quantitative tools control the extent of money supply by changing the CRR.
(B) There are two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease the money supply.
(D) Selling of a bond by RBI leads to reduction in quantity of reserves.
(E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial banks.
Choose the correct answer from the options given below:
Paradox of Thrift means :
Match List-I with List-II:
List-I List-II (A) Bank Rate (I) Securities are pledged in order to repurchase (B) Marginal Standing Facility (II) Minimum rate at which funds are provided for long term (C) Repo Rate (III) Also known as Penal Interest Rate (D) Reverse Repo Rate (IV) Central Bank borrows funds from commercial banks Choose the correct answer from the options given below:
Article 112 deals with :
