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Unformatted text preview: is in charge of supplying currency and maintaining fiduciary reserves and foreign exchange reserves. It is the only financial agency that can issue currency. It also has to control the rate of exchange of the currency in foreign trade and maintain the value of currency internally. It needs to provide financial and loan resources and maintain these accounts for the government. As a banker’s bank it acts exactly in the manner that commercial bankers act with their customers. It accepts deposits in the form of statutory reserves from banks. It rediscounts banker’s bills and provides financial assistance to them. It supervises and advises commercial bankers in various respects. Another fundamental function is to control credit created by commercial banks....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10