What is Central bank?
Answer: The central Bank is an official or semi_official body which protects the money market and is responsible for the financial stability of the country.
It also increases or decreases the supply of money to keep the value of money and commodity prices at
Normal levels.
•Duties of central Bank:
°The First and foremost duty of the Central Bank is to
Look after national interest.
Hence protection and promotion of national interest
Is it's first priority.
Profit motive is only a secondary consideration for his body.
In an interest free economy the Central Bank will perform the same functions as it does in the modern banking system....
Functions:
•It will issue currency notes on the authority of the state.
•All transactions with foreign countries will take place through the Central Bank.
•The Central Bank will supervise all financial matters
And dealings arising from relations with foreign countries.
•The Central Bank will take steps to control and keep
Business, employment,incomes and commodity prices at normal level.
