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The bank known as the Custodian of Nation's Reserve ?

ACommercial Bank

BCentral Bank

CInvestment Bank

DSavings and Loan Association

Answer:

B. Central Bank

Read Explanation:

Characteristics of Central Bank:


  • Apex Institution or Supreme bank of a country.
  • Maximise Public Welfare through monetary policies.
  • It does not deal directly with the public.
  • No profit motive. Its main aim is to regulate the economic activities of the country.
  • It is wholly owned by the Government and has no private participation.
  • Through economic policies the central bank controls  the inflationary and deflationary tendencies of the economy.
  • Custodian of Nation's Reserve
  • It has wide powers which help it to regulate and stabilize the economy.
  • To stabilize monetary and fiscal activities.
  • The Central Bank should aim at stabilizing the effective supply of money to avoid disturbances in the economy.
  • To promote economic development.
  • Monitory policy is fixed by RBI.
  • It addresses interest rates and the supply of money in circulation.
  • Fiscal Policy is fixed by Ministry of Finance, Govt of India.
  • It addresses taxation and government spending.



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