List any two functions of central bank.

Two main functions of the central bank are:

1. Issue of Currency Notes — The central bank has monopoly over issuing currency notes in the country. It keeps reserves of gold, silver, etc., to back the notes and to inspire public confidence in paper currency. The monopoly ensures uniformity, avoids over-issue and lends prestige to the currency system.

2. Banker's Bank and Lender of Last Resort — The central bank acts as the bank for all commercial banks in the country. Commercial banks keep cash reserves with the central bank, and they can obtain loans and rediscount their bills with it whenever they need funds. Therefore, the central bank is also called the 'lender of last resort'.