Question

Explain the role that the central bank plays in regulating the supply of money.​

Answer 1

Answer:

A central bank is an independent national authority that conducts monetary policy, regulates banks, and provides financial services including economic research. Its goals are to stabilize the nation's currency, keep unemployment low, and prevent inflation.

Answer 2

Answer:

central bank plays an important role in regulating the supply of money. It can be explain as follows-

Explanation:

there are two factors -

(i) the depositors

(ii) the borrowers

both these balances money. The money that borrowers have to give as an interest in the banks deposited in the banks as surplus money and this money is again give to the depositors who earlier deposited their money in the bank.

hope this helps.