[amp_mcq option1=”Credit control” option2=”Interest on debt” option3=”Bank note issue” option4=”Lending to bank” correct=”option3″]
The correct answer is C. Bank note issue.
Restricted funds are funds that are not available for general use. They are typically used for specific purposes, such as meeting the reserve requirements of commercial banks or investing in government securities.
Bank note issue is the process of printing and issuing banknotes. It is a function of the central bank, which is responsible for maintaining the stability of the currency. The central bank issues banknotes in order to meet the demand for currency from the public.
The other options are not restricted funds.
- Credit control is the process of regulating the amount of credit that is available in the economy. It is a tool that is used by the central bank to control inflation and economic growth.
- Interest on debt is the interest that is paid on loans that have been taken out. It is a source of revenue for the government and for businesses.
- Lending to banks is the process of providing loans to commercial banks. It is a way for the central bank to inject liquidity into the economy.