Question

Why do we need a Central Bank for an economy?

Why do we need a Central Bank for an economy?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Central bank plays a crucial role in ensuring the economic and financial stability in the economy. Bank conducts the monetary policy to achieve low and stable inflation. During any global financial crisis, central bank expands their toolkits to deal with risks to financial stability and to manage volatility exchange rate.

The primary goal of the central bank is to provide their countries' currencies with price stability by controlling inflation in the country. A central bank also acts as the regulatory authority of a country's monetary policy. Central bank is the sole provider and printer of notes and coins in circulation.

Let me know in the comments, if you want to know more about it.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An Independent Central Bank · Why is it important for the central bank to have both...
An Independent Central Bank · Why is it important for the central bank to have both autonomy and accountability?  (Note: autonomy is defined as “freedom from external control or influence; independence.) ·         Do you think that the United States Federal Reserve has too much power and influence over our economy? Why or why not? The Federal Reserve Board ·         Review the biographies of each of the seven members of the Board of Governors. What can you say about the composition of...
Why do most economists believe that it is important for a country’s central bank be independent...
Why do most economists believe that it is important for a country’s central bank be independent of the rest of the country’s central government? What was the most recent US Federal Reserve's policy-making Federal Open Market Committee (FOMC) report?
why do we need trade?
why do we need trade?
Why do we need Christianity as a foundation of ethics?
Why do we need Christianity as a foundation of ethics?
Why do we need to monitor cost accounting؟؟
Why do we need to monitor cost accounting؟؟
Why do we need money, or demand money?
Why do we need money, or demand money?
Why do we soften water, namely in drinking water, in central heating systems, and in soda...
Why do we soften water, namely in drinking water, in central heating systems, and in soda drinks?
Why do we need document testing in technical communication? And how can we do it right?
Why do we need document testing in technical communication? And how can we do it right?
What are the functions of a central bank? How is the FED, the US central bank...
What are the functions of a central bank? How is the FED, the US central bank structured? What tools does the FED use to perform the functions of a central bank? How do those tools work to carryout the functions of a central bank?
Several European central banks - the European Central Bank, Danish National Bank, Swiss National Bank and...
Several European central banks - the European Central Bank, Danish National Bank, Swiss National Bank and Sweden’s Riksbank - cut key interest rates below zero in 2014, and in Jan 2016 Japan followed. They tried to increase lending, spur inflation and reinvigorate the economy after other options have been exhausted. Read the following articles and discuss some of the potential danger of the negative interest rates. “Negative Interest Rates,” Bloomberg, June 2016 “Here's Why Negative Interest Rates Are More Dangerous...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT