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Money and Banking — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking3 Marks
Question
Explain 'Bankers Bank' function of central bank.
✓

Answer

Commercial banks are required to keep a certain percentage of deposits with the central bank as reserves.
Besides central banks accepts deposits from commercial banks and give them loan in times of need. In this way central bank is bankers’ bank.

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