Explain the reasons for the need for a central bank ? or What is fall control?
Explain the reasons for the need for a central bank? Answer: Reasons for the need for a central bank: - In every country in the world, the central bank appears to have originated in the early 20th century. But before that, before the establishment of the central bank, were there no financial transactions in the country? If financial transactions are taking place then why there is a need to set up central banks. So that the central bank appears in every country today. It seems important to find out why. So here we will look at the reasons for setting up central banks. The reasons can be stated as follows. 1) Deciding monetary policy: - The central bank has the main responsibility to make the fiscal policy announced by the central government a success. Accordingly, the central bank announces its own monetary policy. That policy is called monetary policy. Through this, the central bank uses quantitative and qualitative means to distribute the currency in the economy accor...
