Q.Give reasons: The District Central Co-operative Bank is called the 'balancing centre' and the 'link' of the district's co-operative credit.

Both names describe what the DCCB does from its position in the middle of the structure.

Both descriptions are true, and each names a distinct part of what the DCCB does from its middle position:

Why it is the 'balancing centre':

1. Within a district, some primary societies have surplus funds while others are short of funds at the same time.
2. The DCCB accepts the surplus of the societies that have spare money and lends it to the societies that are short, matching the supply of funds to the demand for them across the district.
3. By thus evening out surplus and need, it balances the district's co-operative credit — hence 'balancing centre'.

Why it is the 'link':

1. The primary societies at the base cannot reach the State Co-operative Bank at the apex directly, and the apex bank cannot reach each village society directly.
2. The DCCB stands between them — it draws funds and refinance from the State Co-operative Bank (and through it NABARD and the RBI) and passes them down to the primary societies, and carries the societies' surplus upward. …

A 'give reasons' answer must actually give the reasons for each name. Do not merge the two ideas — the balancing role is within the district among societies, …