Assertion (A): Central Bank acts as a banker to the Government
Assertion (A): Central Bank acts as a banker to the Government.
Reason (R): Except the one rupee note, all other currency notes bear the signature of Governor of RBI.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False
(d) Assertion (A) is False but Reason (R) is True
Anurag Pathak Changed status to publish January 5, 2024
Ans – (b)
Explanation:-
Assertion (A) is correct as the central bank acts as a banker to the government.
As a banker, it carries out all banking business of the government.
It maintains a current account to keep its cash balances.
It accepts receipts and makes payments for the government and carries out exchange, remittance, and other banking operations.
It also gives loans and advances to the government for temporary periods.
Reason (R) is also correct as except for the one rupee note, all other currency notes bear the signature of the Governor of RBI as issued by the RBI.
One rupee note is issued by the Ministry of Finance of the Government of India.
Anurag Pathak Changed status to publish January 5, 2024
