Central bank is a bank which issues notes. HSC ECONOMICS STD XII MARCH 2019 QUESTIONS.

Ans. I do agree with the given statements. This is because of the following reasons.

Ans. Meaning: - The central bank is the apex bank in the country. It enjoys the apex position in the country’s monetary and banking structure. It regulates and monitors the banking and monetary system in the country.

Issue of Currency Notes: -The central bank has the authority to issue currency notes. The RBI enjoys the monopoly of note issue. The RBI has been authorised by the Government of India to issue notes of all denominations except One Rupee note (which at present is rarely in circulation) the one rupee note is directly issued by the government of India.

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