Nama : Nabila Syahadati Arsha

NIM : 042256785
Mata Kuliah : Bahasa Inggris Niaga
TUGAS 1
The Central Bank is a financial institution, which is generally owned by the
government. Beside that, the main purpose of estabilishing of the central bank is to
ensures that the activities of these financial institutions can create a high and stable
level of economic activity. The central bank is responsible for overseeing a
country’s monetary system to implement some specific purpose, just like currency
stability, low inflation, and full employment. Central banks as a government banks
also generally issue currency, regulate te credit system, supervise commercial
banks, manage foreign exchange reserves, and act as lenders of last resort which is
mean that the central bank functions as a lender to banks in circumstances that force
them to maintain the liquidity of the bank. In Indonesia, we have one central bank
its Bank Indonesia.
From the explanation before, we can conclude that central bank has a very
important role to keep economic activity in a country. Central bank has so many
strategic power in this society and also to maintain the stability of the world banking
financial system and payment system. But, what will happen if some country
doesn’t have central bank? In my opinion, removing the big institution or we know
this as a central bank is a nightmare for the country. It seems like some unrealistic
things, thought, and even dangerous for the country. It cause if some country
doesn’t have central bank how they could do the financial and payment system. The
country will get some trouble to maintain the monetary security through interest
rate instruments in open market operations. If there are some disruption of monetary
stability, it will affects all aspects od a country’s economy. The central bank also
controlling and estabilishing some regulations to ensure good performance of
financial instability and disrupt the economy. Therefore, if country doesb’t have
central bank it easy to get corrupted or fraud in payment system because the absence
of security and convenience. In central bank, also has some research and marketing
function that also important for the country to take steps for maintain financial
system stability. And the last, if some country doesn’t have central bank how they
could managing some crisis in order to avoid financial system instability.
The central bank has so many functon for the country. If some country
dosent have the central bank it will be a nightmare for that country and leading the
country to destruction. Because in nowadays, financial take a big effect in a country.
Besides that, the central bank have 3 function that usefull for the country, there are:
1. Regulated and conduct the bank supervision
2. Regulate and maintain the running of the payment system
3. Establishing and implement the monetary policy
Sources :
Mariani, Siti Era. ADBI 4201 Bahasa Inggris Niaga. Universitas Terbuka
Indonesia : Tangerang Selatan. 2022
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