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This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Central Bank is a
- a)Regional bank
- b)Commercial bank
- c)Rural bank
- d)Apex bank
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 3...
Apex is the top or highest part of something, especially one forming a point. An apex institution is a second-tier or wholesale organization that channels funding (grants, loans, guarantees) to multiple microfinance institutions (MFIs) in a single country or region. Funding may be provided with or without supporting technical services.
The Central Bank is the Apex Bank in India because of the following functions:
- Monetary authority, issue of currency. Banker and debt manager to government, banker to banks, regulation of banking system, manager of foreign exchange, regulator and supervisor of the payment and the settlement systems and maintaining financial stability
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3...
Explanation:
Central Bank is an Apex Bank. Let's understand what an Apex bank is:
Apex Bank:
An Apex Bank is the topmost bank in the banking system of the country. It is also known as the Central Bank. An Apex Bank is responsible for regulating and supervising the activities of other banks in the country.
Functions of Central Bank:
The Central Bank performs various functions in the economy. Some of them are:
1. Monetary policy: The Central Bank is responsible for regulating the money supply in the economy. It uses various tools such as interest rates, reserve ratios, and open market operations to achieve its objectives.
2. Regulation and supervision: The Central Bank regulates and supervises the activities of other banks in the country. It issues licenses to new banks, monitors their operations, and takes action when necessary.
3. Lender of last resort: The Central Bank acts as a lender of last resort to other banks in the country. It provides them with emergency loans when they face liquidity problems.
4. Foreign exchange management: The Central Bank manages the country's foreign exchange reserves. It buys and sells foreign currencies to maintain the stability of the domestic currency.
5. Economic research: The Central Bank conducts economic research to understand the trends in the economy. It uses this research to formulate its policies.
Conclusion:
From the above explanation, we can conclude that the Central Bank is an Apex Bank that performs various functions in the economy such as regulating and supervising the activities of other banks in the country, managing the money supply, acting as a lender of last resort, managing foreign exchange reserves, and conducting economic research.
Central Bank is an Apex Bank. Let's understand what an Apex bank is:
Apex Bank:
An Apex Bank is the topmost bank in the banking system of the country. It is also known as the Central Bank. An Apex Bank is responsible for regulating and supervising the activities of other banks in the country.
Functions of Central Bank:
The Central Bank performs various functions in the economy. Some of them are:
1. Monetary policy: The Central Bank is responsible for regulating the money supply in the economy. It uses various tools such as interest rates, reserve ratios, and open market operations to achieve its objectives.
2. Regulation and supervision: The Central Bank regulates and supervises the activities of other banks in the country. It issues licenses to new banks, monitors their operations, and takes action when necessary.
3. Lender of last resort: The Central Bank acts as a lender of last resort to other banks in the country. It provides them with emergency loans when they face liquidity problems.
4. Foreign exchange management: The Central Bank manages the country's foreign exchange reserves. It buys and sells foreign currencies to maintain the stability of the domestic currency.
5. Economic research: The Central Bank conducts economic research to understand the trends in the economy. It uses this research to formulate its policies.
Conclusion:
From the above explanation, we can conclude that the Central Bank is an Apex Bank that performs various functions in the economy such as regulating and supervising the activities of other banks in the country, managing the money supply, acting as a lender of last resort, managing foreign exchange reserves, and conducting economic research.
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer?
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer?.
This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer?.
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Money and Banking of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Central Bank is aa)Regional bankb)Commercial bankc)Rural bankd)Apex bankCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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