Central bank (reserve bank) – institution that manages a state’s currency, money supply, and interest rates. The Central Bank is responsible for the monetary policy of the country. The bank models its monetary policy to support the fiscal policy of the government. Price stability is an important factor of monetary policy. The bank aims to maintain stability by using various tools like interest rates, open market transactions etc. The Central Bank prints the money in circulation, it also has the mandate to maintain a stable foreign exchange rate and protect it from speculators…. read more about Central Banks >>
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