Nobody downloaded yet

Central banks - Essay Example

Comments (0) Cite this document
It is directed by a chief executive who is habitually known as the governor, president or chairman. The regulation of currency by the central bank…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Central banks
Read TextPreview

Extract of sample "Central banks"

Download file to see previous pages al bank delights in the monopoly of accumulating the financial base of a state and also it do prints the national currency which functions and acts as the state’s legal tender. This particular institution is considered to be independent from political intervention though restricted regulation by the executive and legislative bodies does exist. The central bank enjoys supervisory controls over other financial institutions. This helps in decreasing the risk that commercial banks and other financial institutions might indulge in fraudulent practices that may negatively affect a nation’s economy.
A depository institution is a financial institution like commercial bank, savings bank and credit union that is lawfully permitted to receive deposits from its customers and provide them commercial credits. The federal depository institutions are controlled by the Federal Deposit Insurance Corporation in the United States. Depository institutions are also regulated by the central bank in a number of ways so as to manage the money supply in the economy. They are also obligated by the central bank to conserve the reserve prerequisite as specified.
The central bank functions as a banker, agent and financial advisor to the government. As a banker to the government, it plays the same role as a commercial bank does to its customers. It keeps the accounts of both the central government and the state government. It accepts payments from the government and offers short term credits to the government. It accumulates cheques and drafts put in the government account. It conveys overseas exchange capitals to the government for paying back marginal arrears or in the procurement of foreign goods.
As an agent to the government, it collects taxes and other payments on behalf of the government. It also raises loans from the public thus managing public liability. The central bank also represents the government in external financial institutions in conferences. It equally acts as a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Central banks Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Central banks Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from
(Central Banks Essay Example | Topics and Well Written Essays - 1500 Words)
Central Banks Essay Example | Topics and Well Written Essays - 1500 Words.
“Central Banks Essay Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Central Banks & Monetary Policy

...? CENTRAL BANKS & MONETARY POLICY Central Banks & Monetary Policy Objectives of central banks Introduction As the new roles of central banks changed into agencies of public policy, there were underlying objectives that were infrequently stated. In the context it is used, an individual can conclude that objective that underlie all functions for the interest of the economy, is consistent with economic policy of the government. If compared to a case where objectives included both dimensions of public policy and commercial, such statement significantly increased the clearness of the direction given to bankers...
13 Pages(3250 words)Research Paper

Central Banks and Monetary Policy

...Central Banks and Monetary Policy Introduction Central bank can be identified as an institution whose main task is to manage the currency of a country, its money supply as well as its interest rates. The central bank of any particular country is also responsible to look after the commercial banking system. It is to be stated that the main function of the central bank is to administer the money supply or the monetary policy of the particular country by means of active duties such as handling interest rates and serving as lender of last resorts to the banking sector when...
22 Pages(5500 words)Research Paper

Central banks and monetary policy

...?Central Banks and Monetary Policy Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Central Banks and Monetary Policy Central banks have a broad variety of responsibilities, from controlling monetary policy to applying definite goals such as financial stability, reduce inflation and income employment. Central banks are also normally concerned with currency, collection, as they are the bank of the government. They control the credit structure, supervise commercial banks, deal with exchange funds and operate as a...
13 Pages(3250 words)Research Paper

Central Banks & other International banks

...?Central Banks and other International Banks Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates. The central bank is vital to every modern economy in as far as monetary and fiscal policy is concerned. In the forex market, the bank may purchase foreign currency using domestic currency to keep inflation and deflation in check (Basu, 2009; Topnews, 2011). This helps in valuing or devaluing a particular currency in case of need. To increase the value of a currency, the central bank will...
3 Pages(750 words)Assignment

Central Banks Propel Asia Markets

...Task Central Banks Propel Asia Markets Summary The article, “Central Banks Propel Asia Markets” by Turner describes the injection of liquidity into Asian economies in a bid to reduce dollar costs and ease monetary conditions. The result of the injection of liquidity into several Asian economies was the rise in stock values in both the Asian countries and their counterparts in Europe and the United States. This initiative was accomplished through an agreement by the US Federal Reserve, UK central banks, the Euro zone, Canada and other countries to ease the cost of financing. This was done by softening the existing swap arrangements, a...
6 Pages(1500 words)Essay

Global marketing

10 Pages(2500 words)Essay

Role of Central Banks

...Role of Central Banks In an economy with a central bank monopoly of currency issue, the central bank controls the monetary base through its ability to increase the quantity of currency in the economy. A principal objective of any central bank is to safeguard the value of the currency in terms of what it will purchase. Rising prices, or inflation, reduces the value of money. Monetary policy is directed to achieving this objective and providing a framework for non-inflationary economic growth. As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of...
11 Pages(2750 words)Essay

Should central banks be independent

...number Role of central bank in the economy For a long time, the central bank has been a primary agent for monetarypolicy. It has various functions that lie in the bringing about of financial stability. This is especially important when financial times become difficult and are faced by challenging moments. However, the role and the structures provided by the central bank vary from one country to the other. They are largely dependent on the independent authority and level of responsibility. Picker (64) contends that there are varied circumstances surrounding the development and initiations of central...
4 Pages(1000 words)Essay

Central Banks: A Global Perspective

...Central Bank: Global Perspective Central Bank: Global Perspective The GCC banking sector has largely reformed in its structure and financial sector in the recent times owing to the newly formulated regulations that govern its operations. The structure of GCC is currently dominated by other small domestic and foreign banks that function to meet the banking service needs of the populace (Frederic & Stanley, 2011). They also offer financial services to potential investors both from the local and foreign market. However, the banking sector among the Islamic states still remains to be underdeveloped and lags...
8 Pages(2000 words)Assignment

Fiscal Tools of Central Banks

...Fiscal Tools of Central BanksCentral banks use fiscal tools such as interest rates in order to control money supply in the economy. Monetary policies are widely used by many central banks to regulate money supply by combining output stabilization with inflation. Many economists agree that output is fixed in the long run and any changes in the supply of money result in changes in the price levels. However in the short run, prices and wages do not change immediately because changes in the supply of money can influence the production of goods and services. This has been the chief reason why “central banks...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Central banks for FREE!

Contact Us