--%>
Assignment Help - homework help

Functions of central bank

Describe functions of central bank?

Answer:

(A) Issue of currency: Central bank is the only authority for the issue of currency in country.

(B) Banker to the government (both central and state government). It carries out all banking business of the government and as well manages the public debt.

(C) Bankers bank and supervisor: It keeps a portion of cash reserves of banks, lends them short term funds and gives centralized clearing facilities.

(D) Lender of last resort: The central bank has to give funds to commercial banks as and whenever they require financial help.

   Related Questions in Macroeconomics

  • Q : Consumer Equilibrium of two goods The

    The consumer reaches equilibrium for any two goods X and Y whenever the: (1) MUx/Px = MUy/Py. (2) MUx/MUy = Py/Px. (3) Utility from X equivalents the utility produced by Y. (4) Point of diminishing returns is arrived at. Can someon

    		•
  • Q : Equal Marginal advantage law Assume

    Assume that you receive $18 worth of “jollies” (that is, satisfaction, utility or pleasure) from the very first hole of golf played on a particular day, and that your extra jollies from succeeding holes drops $1 for each and every hole played. You should p

    		•
  • Q : Explain Product Market Equilibrium. To

    To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports

    		•
  • Q : Reallocation of resources through budget

    Reallocation of resources: In case, the market economy fails or does not attain the desired social objectives, the government has to interfere via budget and reallocate resources accordingly. Through its budgetary

    		•
  • Q : Conditions through which the supply

    What are the conditions through which the supply curve will shift?

    		•
  • Q : Problem on tax system In the figure

    In the figure shown below, line T0 depicts a tax system which is: (1) Progressive. (2) Regressive. (3) Proportional. (4) Unbiased. (5) Recessive. 386</span></p> </div> <!-- /comment-box --> </li> </td> </tr><tr> <td> <li> <div class=

    Q : Role of price in market economies What

    What is the role of price in market economies?

    		•
  • Q : Market price decrement according to

    When heroin were legalized, in that case the: (w) market price of heroin would drop considerably. (x) demand would raise although supply would decrease. (y) demand would decrease but supply would increase. (z) price of cocaine would raise.

    Q : Difference between

    Elucidate the differences among the frictional, structural, and cyclical forms of unemployment.

    		•
  • Q : Supply factors in economic growth

    Briefly explain the four supply factors in economic growth?

    		•