Question

Explain the role that the central bank plays regulating the supply of the money long question



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Answer 1

Answer:

It helps to control inflation in economy and manages fdi

Answer 2

Answer:

Under quantitative easing, central banks create money and use it to buy up assets and securities such as government bonds. ... The bank reserves swell up by that amount, which encourages banks to give out more loans, it further helps to lower long-term interest rates and encourage investment

Explanation:

The main way central banks control money supply is buying and selling government debt in the form of short term government bonds. Economists call this 'open market operations', because the central bank is selling bonds on the open market. Central banks usually own a big portion of their county's debt