write an essay on role of central bank of india in any economy with special reference to Indian scnario
Answers
- Essay on the Role of Central Bank in a Developing Economy: The central bank in a developing economy performs both traditional and non-traditional functions. ... The central bank in a developing country aims at the promotion and maintenance of a rising level of production, employment and real income in the country.
Answer:
central bank. After reading this essay you will learn about: 1. Essay on the Definition of a Central Bank 2. Essay on the Functions of a Central Bank 3. Essay on the Objectives of Credit Control by the Central Bank 4. Essay on the Role of Central Bank in a Developing Economy 5. Essay on the Need for Central Bank.
Essay Contents:
Essay on the Definition of a Central Bank
Essay on the Functions of a Central Bank
Essay on the Objectives of Credit Control by the Central Bank
Essay on the Role of Central Bank in a Developing Economy
Essay on the Need for Central Bank
1. Essay on the Definition of a Central Bank:
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A central bank has been defined in terms of its functions. According to Vera Smith, “The primary definition of central banking is a banking system in which a single bank has either complete control or a residuary monopoly of note issue.” W.A. Shaw defines a central bank as a bank which control credit. To Hawtrey, a central bank is that which is the lender of the last resort. According to A.C.L. Day, a central bank is “to help control and stabilise the monetary and banking system.”
According to Sayers, the central bank “is the organ of government that undertakes the major financial operations of the government and by its conduct of these operations and by other means, influences the behaviour of financial institutions so as to support the economic policy of the Government.” Sayers refers only to the nature of the central bank as the government’s bank. All these definitions are narrow because they refer only to one particular function of a central bank.
On the other hand, Samuelson’s definition is wide. According to him, a central bank “is a bank of bankers. Its duty is to control the monetary base…. and through control of this ‘high-powered money’ to control the community’s supply of money.” But the broadest definition has been given by De Kock.