Register
Describe the relationship between the Central bank and the commercial banks
306,267 views
32 votes
32 votes
Describe the relationship between the Central bank and the commercial
banks

User Yuriy Guts
by
2.5k points

2 Answers

14 votes
14 votes
The central bank is charged with the responsibility of monitoring and regulating the activities of the commercial banks and minting of money while commercial banks are responsible for disbursement of the minted money to the public and for running of day-to-day transactions.
User Hugemeow
by
2.7k points
17 votes
17 votes

Answer:

A central bank is a banker's bank. It is normally part of or connected to the government of a country and manages the country's financial system. A commercial bank provides banking services to businesses, institutions and some individuals. The money it takes in from its customers is deposited at its local central bank.

Step-by-step explanation:

User MazMat
by
3.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Link Copied!