Economics 2 project on central bank and its functions
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The central Bank is the main head of all Commercial Banks preset in the country. Its always the Commercial Bank that sets all guidelines related to the economy's monetary policies.
The Two main functions of the Central Bank:
-It Prints and supplies new notes in the economy.
-It help decide all sorts of monetary policies in the economy.
-It acts as a lender of last resort for banks ( commercial only) . If the commercial banks are going out of money or say it basically in a debt then they can approach the central banks which will provide them money to help them run. The money that is given is usually the money collected by central banks from commercial banks all over the economy in a certain period of time.
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