Multiple choice

The Central Bank is not expected to perform the function of

  1. acting as a clearing house

  2. the banker to the government

  3. accepting deposit from Commercial Banks

  4. accepting deposits from general public

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Central Banks do not accept deposits from the general public; that function belongs to commercial banks. Central Banks serve as bankers to the government and commercial banks, act as clearing houses, and manage monetary policy, but do not provide retail banking services.

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