Explain ?banker to the government? function of central bank.

Dear Student

Central bank acts as a banker to the government  as it collects revenues ,taxes ,incomes of the government. As banker to the government, the central bank keeps deposits of the central and state governments and makes payments of any sort on behalf of government.
It also buys and sells foreign currencies on behalf of the government. It keeps the stock of gold of the government. Thus it is the custodian of government money and wealth.

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