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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking3 Marks
Question
Explain 'government’s bank' function of central bank.
✓

Answer

Although central bank does not deal with public it deals with government. It conducts the same banking operations for government as commercial banks do for public it gives them loans, does interbank transfers etc. for government.

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