Role of the central bank in an economy

Commerce study Manual STUDY MANUAL|PDF NOTES|SYLLABUS|REVISION
  1. Spurring economic growth and development-investments being made savings made clients and others offered to businesses and individuals as loans.
  2. Currency and economic stability-it ensures that the value of a countrys currency is stable in relation to other countries currencies.
  3. Smooth operation of the money market-ie short term finances required businesses buying or selling securities and bonds
  4. Equitable development-it ensures that credit is available to all the sectors of the economy.
  5. Regulating and financing banks and other financial institutions-this ensures stability in the countrys economic environment.
  6. Regulating money supply-it plays an important role in ensuring that adequate money is available in the economy to ensure expansion of economic activities.



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