In: Finance
How significant a role do central banks play in economic growth?
Hello,
Central Bank - Central bank is a Apex bank of the
country, it is a financial institution control over the production
and distribution of the money. It is responsible for the
formulation of monetary policy.
Significant role of Central bank play Economic growth are-
Central bank in developing economy perform both the Traditional and
non traditional functions. Traditional functions are -
The Role of central bank is to generate employment, maintenance
rising level of production. Aim of central bank is to improve
currency and credit system in underdeveloped countries.
The central play an important role in proper adjustment between the
demand and supply of money. Interest rate policy play an important
role in development of economy, and it will also heilps in the Debt
management (selling and buying of government bonds).
I hope this clear your doubt.
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