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.