ICSE Class X Economics 2019 Solved Papers

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Explain the following functions of the Central Bank:
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Question : 29 of 40
 
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Fiscal agent of the government.
Solution:
As a fiscal agent, the central bank makes short-term loans to the government for a period not exceeding 90 days. It floats loans, pays interest on them, and finally repays them on behalf of the government. Thus, it manages the entire public debt.
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