Question

Why did Banks located in cities not really want a central bank?

Why did Banks located in cities not really want a central bank?

Homework Answers

Answer #1

it can be mentioned that banks located in the city is really don't want a central bank because of the fact that are huge amount of liquid transfers that take place from day to day and with the requirements of Central Bank such as Reserves and repo rate, it would be difficult or stopping the banks from functioning freely and the limitations can get to affect their business all-in-all and therefore usually banks located in cities don't want a central bank all in all.

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