BANKING AFFAIRS

Detailed explanation-1: -Central banks carry out a nation’s monetary policy and control its money supply, often mandated with maintaining low inflation and steady GDP growth. On a macro basis, central banks influence interest rates and participate in open market operations to control the cost of borrowing and lending throughout an economy.

Detailed explanation-2: -The Functions of a Central Bank can be discussed as follows: Custodian of Cash reserves. Custodian of International currency. Lender of last resort. Clearing house for transfer and settlement.

Detailed explanation-3: -A central bank is an independent national authority that conducts monetary policy, regulates banks, and provides financial services.