In this chapter, we study the organization and management of the central bank as the government's bank, the bankers' bank and as the controller of credit. We also study both the quantitative weapons and selective credit control measures employed by the central bank to control credit. After reading this chapter, you will be able to understand the functions of central bank clearly.

The central bank is the premier banking institution and heads the list of all institutions that have an impact on the monetary policy of any nation. The functions of the central bank vary from country to country depending upon its stage of economic development, the nature and development of economic growth and activity, the banking ...

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