Give reasons or explain. 4. As a banker to the government, the Central Bank transfers government funds.

Give reasons or explain.

4. As a banker to the government, the Central Bank transfers government funds.
Answer: 

Central Bank acts as a banker to the government. On behalf of the government, the Central Bank buys and sells government securities, maintains its books of accounts, manages its public debt and also grants loans and advances to the government. Thus, as a banker to the government, the Central Bank transfers government funds by accepting receipts and making payments on behalf of the government.

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