Question

A public authority that provides banking services to commercial banks and regulates financial institutions and markets is called a_______________.
A. commercial bank.
B. central bank.
C. mint.
D. thrift institution.
E. money market fun

Answer 1

Answer:

Option B, central bank, is the right answer.

Explanation:

Option B is the correct answer because the central bank is the apex bank of the country which monitors banks and provide financial services. For example, the services of storing foreign exchange reserves, formulation of monetary policy and control of inflation. It determines the various interest rates and further these rates are being followed by commercial banks and financial institution.