THE CENTRAL BANK
This is an institution established by the government of that country to manage and control the supply of and demand for money in a country’s economy.
It can also be defined as the highest institution in a country’s banking system which regulates and controls the economy financial activity to ensure stability and prosperity.
Objectives of Monetary Control by the Central Bank
- Facilitate rapid and steady economic growth.
- Create full
- Stabilize prices of commodities
- Ensure balanced development.
- Enhance equilibrium in balance of payments.
- Foreign Exchange rate stability.
- Moop out excess liquidity
- Control business cycles.
- Intrest rate stability.
- Financial market stability.