What is central bank? Its functions
Central bank occupies an important place in the monetary and banking system of every country. It is the apex bank of a country. In case of Under Developed countries, it is instrumental in the process of growth. It is the sole agency of note-issue in a country. In India, Reserve Bank, In England, Bank of England and In America, Federal Reserve System operate as central banks. DEFINITION According to Prof. Samuelson" Every Central Bank has one function. It operates to control economy, supply of money and credit." FUNCTIONS The functions of Central bank are as under:- 1) ISSUING OF NOTES:- Central bank now-a-days has the monopoly of note-issue in every country. The currency notes printed and issued by the central bank are declared unlimited legal tender throughout the country. It has been given exclusive monopoly of note-issue in the interest of uniformity, better control, elasticity, supervision, and simplicity. It will also avoid the possibility of over-issue by...