Question

Select the correct answer from each drop-down menu.

What are Reserve Banks?
Reserve Banks are ____(commercial banks,investment banks, regional banks)
that help the _____(central bank, government,state)
carry out its duties.

Answer 1

regional banks and central bank

Step-by-step explanation:

Reserve banks are banks within a region whose function is to supervise the commercial banks within that region. Regional banks are banks with its major base in a region or state. It operates in a section of the country rather than the country as a whole.

Central bank is the of banks. It regulates and control all other banks in a country. It also serve as the government bank. It supervise the financial stability in a country.

The major difference between the regional bank and central bank is that when a regional bank operates in a certain portion of the country, the central bank has a national domain.

Reserve Banks are regional banks)

that help the central bank carry out its duties.

Answer 2

The correct answer is Regional banks; central bank

Regional banks are an alternative amid the short supply of credit by traditional banks.

It can be said that the Central Bank is an autarchy in the financial system of a country, or a community of countries, as is the case with the European Central Bank. A Central Bank is always linked to the Government of the country, some with more, others with less autonomy in relation to the Government.

In this way, a country's Central Bank could be called the Bank of Banks. It plays the role of the main monetary organ in any country, as its attributions have a direct impact on the population. Typically, the duties of a Central Bank are:

- Issuing currency.

- Fix the basic interest rate.

- Operate in the foreign exchange market.

- Make compulsory deposits.

- Make loans to banks in difficulty.