The following points highlight the top six objectives of credit control by central bank. Some of the objectives are: 1. To Stabilise the Internal Price Level 2. To Stabilise the Rate of Foreign Exchange 3. To Stabilise the Money Market in the Country 4. To Control the Activities of Business Cycle and Others. Credit Control Objective # 1. To Stabilise [...]
The following points will highlight the fourteen important functions of the central bank in economy of a country. Function # 1. Monopoly of Note-Issue: The central bank controls the issue of notes. It has the sole right (monopoly) in note issue. It prints notes and authorises the minting of coins by the Mint. Old notes and coins are removed by [...]
Read this article to learn about the relationship between the central bank and commercial banks. The central bank and commercial banks have their distinct identities and functions. The central bank, through its function of the lender of the last resort, acts as an active agent of the government in implementing its monetary policies. In developed countries, the efficient carrying out [...]