BANKING AFFAIRS

Detailed explanation-1: -The central bank is also responsible for controlling or overseeing the adjustment of credit of commercial banks. Central banks can influence the deposits of commercial banks by performing open market operations and changing CRR to control various economic conditions.

Detailed explanation-2: -Credit Control is a role of the Reserve Bank of India’s central bank, which regulates credit, or the supply and the demand of money or liquidity in the economy. The central bank controls the credit extended by commercial banks to their customers through this function.

Detailed explanation-3: -The Reserve Bank of India (RBI) controls the supply of money and bank credit.

Detailed explanation-4: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.

Detailed explanation-5: -Central banks conduct monetary policy by adjusting the supply of money, usually through buying or selling securities in the open market. Open market operations affect short-term interest rates, which in turn influence longer-term rates and economic activity.