Central Bank prints currency in the country.a)Trueb)Falsec)Partially t...
Explanation:
The correct answer is option 'B', false. Here's why:
What is a central bank?
A central bank is a financial institution that is responsible for managing a country's monetary policy and currency supply. It acts as a banker to the government, regulates the country's financial system, and provides financial services to commercial banks.
How is currency printed in a country?
Currency is printed by a government-owned printing press, not by the central bank. The government decides how much currency needs to be printed and provides the printing press with the necessary materials and designs.
What is the role of the central bank in currency supply?
The central bank plays a crucial role in currency supply by managing the money supply in the economy. It does this by regulating the amount of money in circulation, setting interest rates and reserve requirements for commercial banks, and controlling the flow of funds between banks.
The central bank also oversees the production and distribution of currency, ensuring that it is of high quality and difficult to counterfeit. It works closely with commercial banks to ensure that there is enough currency available to meet the needs of businesses and consumers.
Conclusion:
In summary, while the central bank does not print currency, it plays a critical role in managing the supply of money in the economy and ensuring that currency is of high quality and readily available. Therefore, the statement "Central Bank prints currency in the country" is false.
Central Bank prints currency in the country.a)Trueb)Falsec)Partially t...
Central Bank don’t directly print currency in the country, it gets it printed by the subsidies of RBI.