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What is meant by the central bank of a country?

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Question

What is meant by the central bank of a country?

Long Answer
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Solution

The central bank leads the money market and regulates credit volume to ensure stability. Credit money accounts for a significant portion of the country's total money supply. Excess credit leads to higher pricing, imports, and decreased exports, which in turn result in an unfavorable payment balance.

The goal of credit control is described below:

  1. The stability of internal prices.
  2. The foreign exchange rate is stable.
  3. Promoting high employment.
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Chapter 14: Banking - EXERCISES [Page 274]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 14 Banking
EXERCISES | Q 1. (i) | Page 274
Goyal Brothers Prakashan Commercial Applications [English] Class 10 ICSE
Chapter 7 Banking and Bank Transactions
EXERCISES | Q 1. (i) | Page 127
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