Ø This is a major industry in most countries. It helps people to borrow, lend, and carry out a range of other financial activities. It encourages the growth of output of Economics.
Some examples of banks are:
- Central Banks
- Commercial Banks
- Investment Banks
- Mortgage Banks, etc.
- Central Bank:
The Central Bank:
Ø This is the single most important and influential bank in a country.
Ø The central bank is a government owned bank which provides banking services to the government and commercial banks.
- It acts as a banker to the government.
- It acts as a banker to commercial banks.
- It acts as a lender of last resort.
- It manages the national debt.
- Holds the country’s reserve of foreign currency and gold.
- It issues bank notes.
- Implements the government’s monetary policies: with the prime aim of keeping inflation low and steady. This involves controlling the money supply and influencing interest rates throughout the economy,…