What do you think will happen to the financial system of a country in absence of center bank?
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Answer:
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The central bank has been described as the "lender of last resort," which means it is responsible for providing its nation's economy with funds when commercial banks cannot cover a supply shortage. In other words, the central bank prevents the country's banking system from failing.
However, the primary goal of central banks is to provide their countries' currencies with price stability by controlling inflation. A central bank also acts as the regulatory authority of a country's monetary policy and is the sole provider and printer of notes and coins in circulation. Time has proved that the central bank can best function in these capacities by remaining independent from government fiscal policy and therefore uninfluenced by the political concerns of any regime. A central bank should also be completely divested of any commercial banking interests. This are the functions , if for any reason there is an absence of Central Bank .....THE COUNTRY'S FINANCIAL SERVICES WILL CRASH AFTER SOME TIME .....
Explanation:
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