A liability of the central bank in functioning as the bankers' bank is:

Question

Quizplus · Accepted Answer

One of the primary functions of the central bank as the bankers' bank is to hold accounts of commercial banks. These accounts can sometimes be a liability for the central bank, as they need to ensure that they have enough liquidity to meet the demands of these banks for withdrawals and other transactions. Therefore, option A is the best choice as it directly relates to the liability of the central bank in functioning as the bankers' bank. Options B, C, and D are incorrect as they do not directly relate to this specific function of the central bank.

A Liability of the Central Bank in Functioning as the Bankers