Give Reasons or Explain the following:
As a banker to the government, the Central Bank transfers government funds
As a banker to the government, the Central
Bank transfers government funds.
ANSWER
Central bank is an apex bank
that controls the entire banking system of a country and controls the supply of
money in the economy through its various monetary policies. The Central bank is a banker, agent and financial
adviser to the government. It manages the account of the government by
transacting government funds, it buys and sells the securities of the
government and maintains foreign reserves for the government.
