Central Bank : Objectives and functions

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 Central Bank :-

A central bank is a monetary institution, it controls the supply of money and provides financial services. Central bank help to prevent inflation, keep unemployment low and stabilize the nation's currency. Central bank has the power to regulate commercial bank.


Functions of Central Bank :-

(1)- Control the money supply through open market operations

(2)- Control inflation and base rate

(3)- Ensure there are sufficient foreign-exchange reserves

(4)- Maintain reserve requirements with private banks.


Objectives of Central Bank :-

(1)- Full Employment

(2)- Price Stability

(3)- Economic Growth

(4)- Exchange Rate Stability

(5)- Financial Stability

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