Function Of Central Banks Flashcards
1
Q
To help
A
the Government maintain macroeconomics stability
2
Q
To bring
A
about financial stability in the monetary system
3
Q
To act
A
as lender of last resort (lending to banks that are essentially solvent but facing short term liquidity problems at a price to protect deposition and prevent a systemic crisis in financial system)
4
Q
Controlling
A
the note issue
5
Q
Acting
A
as both the Government and Banker’s Bank
6
Q
A
International Obligation
