Which of the following is NOT a function of the Central Bank?

The correct answer is - Accepting deposits from the public

Key Points

• Accepting deposits from the public
  • Central banks do not accept deposits from the general public. This is a function of commercial banks and other financial institutions.
  • The primary role of a central bank is to oversee the monetary system and implement policies rather than directly interacting with the public for deposits.

Additional Information

• Issuing currency
  • One of the primary functions of a central bank is to issue and regulate the nation's currency.
  • It ensures that there is adequate currency in circulation and maintains the integrity of the currency system.
• Controlling inflation
  • Central banks use monetary policy tools to control inflation and stabilize the currency.
  • They may adjust interest rates and engage in open market operations to manage economic growth and inflation.
• Managing foreign exchange reserves
  • Central banks manage the country's foreign exchange reserves to ensure economic stability and facilitate international trade.
  • This involves buying and selling foreign currencies to maintain the value of the national currency.