Central Bank 🏦 is an apex bank of the entire banking system of a country is called central bank The function of the central bank 1. Bank of issuing notes 2. Banker to the government 3. Banker's bank and supervisory role 4. Lander of the last resort 5. custodian of foreign exchange 6. clearing house 🏘️ function 7. control of credit
Money is a medium of exchange There are two functions of money 1.primary function 2.secondary function First we are dissuss about primary function 1.primary function Money 💵 performs two primary function 1 medium of exchange-money act as medium for sale and purchase good and services 2 measure of value or unit of value- money serves as measure of value in other words it serve unit of account 2 secondary or subsidiary function 1 standard of subsidiary function:deferred payment refer to those payment which are made sometimes inthe future 2 store of value: store of value implies store of wealth 3 transfer of value: money serves as a convenient mode of transfer of value (wealth)
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