ANSWER FOR ENGLISH ECONOMIC CLASS TASK ONE

2. If a country does not have a

central bank, the stability of the
currency value, the stability
of the banking sector, and the
financial system as a whole will
decline and become
unstable. Because the central
bank is an institution that is
responsible for maintaining
price stability or the value of a
currency prevailing in that
country, which in this case is
known as inflation or rising
prices, which in other words
means a decrease in the value
of money.
The central bank is an entity that
is responsible for overseeing a
country's monetary
system. This cannot be separated
from the function of the central
bank in the economy
itself. Central banks have a
variety of responsibilities, from
overseeing monetary policy
to carrying out specific goals
such as currency stability, low
inflation and full
employment. The central bank as
a state bank also generally issues
currency, regulates
the credit system, oversees
commercial banks, manages
foreign exchange reserves and
acts as a lender of last resort. That
is, the central bank functions as a
lender to a bank in
circumstances that force it to
maintain the liquidity of the bank.
Accordingly, the central
bank has a purpose and is given
the responsibility to achieve and
maintain the stability
of the value of the currency in
circulation.
The stability of the value of the
currency is a fundamental
obligation for the central bank
so that the confidence of the state
and society can be maintained. In
practice, the
stability of the value of the
currency referred to includes the
stability of the value of the
currency against goods and
services (measured and reflected
in the inflation rate) as
well as stability against the
currencies of other countries
(measured and reflected in the
development of exchange rates or
currency rates). The stability of
currency values, both
in terms of inflation and
exchange rates, is very important
to support sustainable
economic development and
improve people's welfare. Those
are a number of
explanations regarding the
function of the central bank in the
economy which also
includes descriptions related to
the fields of activity of the central
bank in the country's
economy. The activities carried
out by the central bank are also
the answer to the
question why in a modern
economy every country has a
central bank or why every
country should have a central
bank.
So if a country does not have a
central bank, it is very difficult
for that country to regulate
economic stability and welfare
for its people
An auction is a system of buying and selling goods or services by offering them
for bidding—allowing people to bid and selling to the highest bidder. The
bidders compete against each other, with each subsequent bid being higher than
the previous bid. Once an item is placed for sale, the auctioneer will start at a
relatively low price to attract a large number of bidders. The price increases
each time someone makes a new, higher bid until finally, no other bidders are
willing to offer more than the most recent bid, and the highest bidder takes the
item. An auction is considered complete when the vendor accepts the highest
bid offered and the buyer pays for the goods or services and takes possession of
them.
Although auctions are often considered synonymous with the sale of antiques,
rare collectibles, and paintings, they are also used in investment
banking. Investment bankers use auctions to attract the highest
possible price when selling a company. The process starts by inviting multiple
buyers to the auction. More prospective buyers usually translate to competitive
bidding that pushes the price higher, enabling the bank to maximize its profit
from the sale. In contrast, most buyers prefer proprietary sales over an auction
because they can usually exercise more control over the purchase price.

Before the start of an auction, potential buyers are usually allowed a preview
period to check the items on sale and examine their condition. The preview
period may be announced as being on the evening before the day of the auction
or a few hours before it starts. Once potential buyers are done viewing all the
items and are interested in placing their bids, they must register with the
auctioneer. The registration process requires the buyer’s details like phone
number, address, and identification such as a passport or driver’s license
number. Each registered bidder is given a bidder card with a number that is used
to identify all participants.

The sound of a bell traditionally marks the beginning of an auction. The

auctioneer gives a brief description of the item for sale and starts the bidding
with a price that he/she considers a reasonable opening price. Alternatively, the
seller may have set a minimum bid price that they will accept, and the bidding
starts there. The bidders then call out their bids, with each bid being higher than
the subsequent bid. The bidders lift up their bidder card to announce their bid
price so the auctioneer can identify who is making the bid. The process ends
when there are no more bids, and the buyer making the highest bid gets the
item. The highest bidder takes ownership of the item immediately after paying
their bid price.