ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A central bank is an independent, non-political financial agency that supervises monetary policy. It is responsible for maintaining cash and foreign currency reserves, thus stimulating the nation’s economic growth and controlling inflation.

Detailed explanation-2: -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-3: -A central bank is a public institution that is responsible for implementing monetary policy, managing the currency of a country, or group of countries, and controlling the money supply.

Detailed explanation-4: -Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.

Detailed explanation-5: -The central banks all over the world adopt monetary policy to stabilise price level and GDP growth by directly controlling the supply of money.