Question

In: Economics

What is the role of the central bank and financial institutions in improving the financial markets...

What is the role of the central bank and financial institutions in improving the financial markets in America? give an example

Solutions

Expert Solution

Central bank of america maintain low inflation rate and control the supply of money in its nation. The federal reserve system is the centarl bank of america and the main role od Fed is to carry out monetary policy and maintain money supply. The role of Financial institution is to provide platform for lenders and borrowers both where lenders provide loan to the borrower..

For Example : The ferderal reserve system of america increase or decrease money supply through open market operations and maintain low inflation.


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