Central bank is that bank in which the only power of issued currency notes. It can issued the notes on the authority and behalf of the government. It is the controller and guardian of the money market. It is the last lender of the money resort. As customer deal with the commercial bank, only commercial bank deal with the central bank . customer are not directly deal with the RBI (central bank). It can raised and reduced the money in the market at any time.
Showing posts with label central bank. Show all posts
Showing posts with label central bank. Show all posts
Features of developed of money market
A money market is an agreement that brings about a direct and indirect contact between the lenders and borrowers. Borrowers like merchant, trader, manufacturer, business concern. Lenders like commercial bank, central bank, insurance company, financial concern. finance is defined as the provision of money at time when it is required. financial institution plays a very importat role in the economic system.
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