Explain any two important functions of central bank in an economy?

Q: 1)The 'Banks' in the Banks sub-model refers to

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: If the central bank’s goal is to maximize output, what interest rate will we expect in equilibrium?

A: The equilibrium real interest rate is the real rate of return which must be maintained to keep the…

Q: Why central bank can be semi government ?

A: Semi-Government: A semi-government business is one that is owned by private firms and is…

Q: If the central bank desired to increase spending in the economy, using the instruments ofmonetary…

A: Monetary policy is used by the federal reserves also known as the central bank of an economy to…

Q: What is the significance of liquidity with respect to money supply and money demand?

A: As the Central bank tightens the monetary policy, it removes liquidity from the economy by selling…

Q: Explains it correctly and not copy paste provides Q)According to Ben Bernanke the main tool of…

A: In a financial crisis in 2007 - 2009, asset prices see a steep decrease in value, businesses, and…

Q: What are the primary goals of a central bank ? Why it is important for the bank to attain these goal…

A: The central bank is typically in charge of monetary policy and member bank regulation in modern…

Q: A6) Finance Today there is a clear consensus about the best way to design a central bank. What are…

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Q: 17. Which of the following sequence of events follows an expansionary monetary policy? arogoto

A: Expansionary monetary policy is a tool used by central Bank for the smooth going of the economy.

Q: How independent is the Central Bank? What factors contribute to and what factors work against…

A: Central banks are independent authorities appointed explicit obligations and officially protected…

Q: What are the effective Central Bank Frameworks?

A: The operational frameworks of central banks influence their choices and actions. As market…

Q: Why was the European Central Bank less aggressive than the U.S. Federal Reserve Bank in responding…

A: Answer- Need to find- Why was the European Central Bank less aggressive than the U.S. Federal…

Q: a) Discuss the benefits and costs of pi ownership of central banks by giving examples from central…

A: A public bank is one that is owned by the government, a municipality, or other government…

Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…

A: Central banks controls the money supply and maintain the inflation rate at desirable level through…

Q: How does the Central Bank spend it's

A: National banks influence the amount of cash available for use by trading government protections…

Q: Discuss how the central bank increase the federal funds rate ripples through the different sectors…

A: The economies around the world tend to focus on their growth and development through various…

Q: What practical difficulties will central bank face if it varied natural rate of interest?

A: The neutral rate of interest or sometimes what is referred to as the natural rate of interest is the…

Q: If central Bank increases money supply at a rate that is higher than before , what will be the…

A: The quantity theory of money: The quantity theory of money supply indicates that money supply and…

Q: What is the importance of Central Bank in nation?

A: Central banks play a crucial role in ensuring financial and economic stability. They help in…

Q: The main responsibility of a Central bank is: O Neither monetary or fiscal policy Both monetary and…

A: Monetary  policy is the policy of the Monetary Authority of the country "Central Bank" that aims to…

Q: What are the characteristics of the Central Bank.

A: Central Bank is an apex institute under which all the commercial banks are registered. Central Bank…

Q: The primary function of central banks is to:   a. Increase risk and volatility to increase…

A: The primary function of central banks is to control inflation and help reduce business cycle…

Q: Explain the factors on which an independent central bank can have positive impact and the factors on…

A: The central bank is the sole authority and major financial institution of the economy that indulges…

Q: Contrast the actions a central bank would take to increase the quantity of money in the economy with…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: Why would it be problematic for a central bank to havea primary goal of maximizing economic growth?

A: A central bank conducts the monetary policies of a country.  It also regulates the commercial banks.

Q: Why might an independent central bank be preferable to a a trustee bank? What is an example of an…

A: Answer- Need to find- Why might an independent central bank be preferable to a trustee bank? What is…

Q: Which action taken by a central bank would reflect expansionary monetary policy? A. Selling treasury…

A: Expansionary monetary policy results in increase in money supply which leads to increase in output…

Q: Explain the main theories of central bank behaviour.

A: Main theories of central bank behavior 1)Monetary stability For monetary stability,central bank may…

Q: Which is a central bank? 1) a bank for banks 2) any government-owned bank 3) any government-run…

A: Introduction. Central Bank is the head bank of Every which regulates other Bank

Q: Explain the type of policies a central bank can implement to raise the interest rate

A: The goal of the monetary policy of the central bank is to control the amount of money in the…

Q: The primary function of central banks is to: Answer a. Increase risk and volatility to increase…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: What is the role of the Central Bank? How does central bank regulate monetary policy?

A: The central bank is the apex institution that manages monetary policy in the economy.

Q: Using a money market, a causal chain, and the Macro model, describe and show how contradictory…

A: Government will use policies like monetary and fiscal policies to control and regulate the economy.…

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

Q: Is it preferable for central banks to primarily target inflation or unemployment? Why?

A: Unemployment is a situation in which workers in the economy are willing to work at the prevailing…

Q: why a central bank be independent from government

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: Describe in detail what an independent central bank means for an economy, and why is this…

A: A financial organisation that controls an economy's currency and money supply is known as the…

Q: Give 3 reasons why Central Bank is the "lender of last resort"?

A: The central bank performs the function of the lender of last resort for commercial banks which…

Q: What is the main role of central bank in an economy?

A: The central bank that is also known as the "lender of last resort," meaning it is responsible for…

Q: What is the role of the central bank as it relates to its importance to consumers?

A: A central bank is a national autonomous body conducting monetary policy, controlling banks, and…

Q: Explain what an independent central bank means for an economy, and why is this confirmation of…

A: The Central Bank  is defined as a financial institution which manages the money supply and the…

Q: Assume that the central banks (bog) primary goal is to correct a weak economy. how can it use open…

A: Central bank of any country is responsible for its monetary policy, which includes three major…

Q: the importance of the Central Bank in the financial market

A: Central Bank:  The central bank plays a vital role. It monitors and regulates the working of the…

Q: What is the purpose or importance of having higher net income of a central banks?

A: In an economy, Central Bank is the financial authority that is responsible to conduct monetary…

Q: Give two reasons why a central bank does not have complete control over the level of bank deposits…

A: In an economy, it is generally said that the Centra bank has the complete control over the supply of…