Question:
The Central Bank acts as ‘Government’s Bank’ in an economy.
The Central Bank acts as ‘Government’s Bank’ in an economy.
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The central bank’s role as the ‘Government’s Bank’ ensures financial stability and economic policy implementation.
Updated On: Jan 13, 2026
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Solution and Explanation
Custodian of Funds: It holds the government’s deposits and facilitates transactions.
Debt Management: It manages the issuance of public debt and treasury bills.
Policy Advisor: The central bank advises the government on monetary and fiscal policies.
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