Role of Central Bank Operation in Money Market

Role of Central Bank Operation in Money Market. A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency.Role of central Bank operation in money market.

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Role of Central Bank Operation in Money Market