Central Banks - the functions of the central bank - the central banks acts as a banker for commercial banks
3 important questions on Central Banks - the functions of the central bank - the central banks acts as a banker for commercial banks
What doe we call a com banks deposit to central bank, to com banks and to central bank?
To the com bank the deposit is an asset
to the central bank the deposit is a liability
to the central bank the deposit is a liability
1. What is the advantage of depositing cash with the centeral bank rather than holding cash reserve
The central bank will on order trasnfer money from one bank's account to the account of another bank
Why do we call a central bank a lender of last resort?
Because when a com bank is short of reserves, and is in urgent need of it the central bank will loan money on daily basis.
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