Which of the following service is rendered by the Central Bank?
Which of the following service is rendered by the Central Bank?
- A) Provision of brokerage service
- B) safekeeping of cash and other valuable
- C) discounting bills of exchange
- D) issuing currency notes
Correct Answer: D) issuing currency notes
Explanation
The Central Bank is responsible for the monetary policy of a country. One of its main functions is to issue and manage the currency of the country. This means that the Central Bank is responsible for printing and distributing the currency notes and coins that we use for transactions.Currency notes are the paper money that we use to buy goods and services. They come in different denominations, such as Naira, Dollar, Euro, etc. The Central Bank ensures that there is enough supply of currency notes to meet the needs of the economy.
By issuing currency notes, the Central Bank helps to maintain the stability of the currency and ensures that there is enough money in circulation for people to use in their daily transactions.
So, in summary, the service rendered by the Central Bank is issuing currency notes. This is an important role that helps to facilitate economic activities in the country.
Please note that this explanation is based on general knowledge and may vary slightly depending on the specific country and its Central Bank.