WORLD HISTORY

Detailed explanation-1: -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-2: -RBI, also called the Monetary Authority of India, was set up on the recommendation of the Hilton Young Commission. The statutory status of the RBI is provided under the Reserve Bank of India Act of 1934, and become operational on April 1, 1935.

Detailed explanation-3: -Congress has given the Fed two coequal goals for monetary policy: first, maximum employment; and, second, stable prices, meaning low, stable inflation. This “dual mandate” implies a third, lesser-known goal of moderate long-term interest rates.

Detailed explanation-4: -Central bank can be called the apex bank, which is responsible for formulating the monetary policy of an economy. Commercial banks, on the other hand, are those banks that help in the flow of money in an economy by providing deposit and credit facilities.

Detailed explanation-5: -A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system.