Central bank has sole authority of printing currency notes . What are its advantages ? ( if possible make points )
Following are the advantages of central bank being the sole authority for printing currency notes.
1) Central bank, being the sole authority that undertakes and recommends measures to control money supply prints currency only according to the prevailing situations in the economy and as per prescribed guidelines by the government.
2) Since central bank acquires various inputs for printing the notes from different countries, it is extremely difficult for the people involved in printing duplicate notes illegally.
3) Central bank can determine the denomination of notes to be printed on its own if it is the sole authority of printing notes etc.
1) Central bank, being the sole authority that undertakes and recommends measures to control money supply prints currency only according to the prevailing situations in the economy and as per prescribed guidelines by the government.
2) Since central bank acquires various inputs for printing the notes from different countries, it is extremely difficult for the people involved in printing duplicate notes illegally.
3) Central bank can determine the denomination of notes to be printed on its own if it is the sole authority of printing notes etc.