Question:

After studying the second session topic entitled what central banks do? and also
read the additional material. Do you agree if every country must have a central
bank? Why?
Answer:
What central banks do?
So many things bank central do especially to carry out a nation’s monetary policy
and control its money supply, often mandated with maintaining low inflation and
steady GDP growth. On macro basis, central banks influence interest rates and
perticipate in open market operations to control the cost of borrowing and lending
throughout an economy. Central bank also operate on a micro-scale, setting the
commercial banks reserve rasio and acting as lender of last resort when necessary.
Do you agree if every country must have a central bank?why?
I totally agree, because central bank is the most important thing to a country. In my
opinion central bank is like the key to operate money sirculation in a country so
that it’s can creat stable economic activity.