What are the functions of a central bank?

Answer by  daltonbob (52)

A central bank moves money around the country, both physical and through wire tranfer accounts. It also establishes a interbank loan rate, which is the interest that the bank pays to borrow money from other banks or the central bank itself. Central banks also help set fiscal policy for the country.

Answer by  Richard88 (391)

A central bank is responsible for monetary policy of a country. The total supply of money, overnight interest rates for lending to private banks within the country, and stability of the money supply are all its responsibility. A central bank may be a governmental function, or it may be more or less independent of the national government.

Answer by  Liz59 (10966)

Yes, a centralized bank is actually communicating with many other banks. It has a central location and delivers from location to location. You are right about the nationalized banking part.

Answer by  PGR (74)

A central bank is a nationalized institution that insure cstability in the banking system by lending to member commercial banks. It is also an instrument of economic policy.

Answer by  kaboom969 (242)

A very important function of a central bank is to control the country's inflation rate from going up too much, or falling down.

Answer by  Brandydog (631)

The central bank has the responsibility of controlling the nations money supply. They are a lender of last resort for the government

Answer by  dsmith42 (371)

The central bank is a tool used to control the money supply. The total amount of money in circulation is not fixed. The central bank attempts to control this amount by buying and selling government securities and setting the interest rate that banks charge each other for loans.

Answer by  selvarajan (71)

it is a nationalized bank. The main function of the bank is to serve the people and the antion. It helps the downdrown people uplift the poor stage to upper stage. The main function is to accept money from the people and lending money to the customer. It helps the agri customer and business man.