Question

What is meant by 'Central Bank'?

Answer 1

A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country. It issues currency, regulates money supply, and controls different interest rates in a country. Apart from this, the central bank controls and regulates the activities of all commercial banks in a country. Bank of England was the world’s first effective central bank that was established in 1694