Question

The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the___________________

Answer 1

Based on macroeconomic theory and financial regulations policies, the Central Bank is the institution designed to control the quantity of money in the economy and oversee the "safety and stability of the banking system."

Central Bank is crucial in the development of the nation's financial institutions and economy.

Some other roles of the Central Bank include the following:

• Serving as the bank to other types of banks in the country.
• Central Bank is also responsible for monetary policy formulation.
• It also serves as the Lender of resorts.
• It also manages economic fluctuations.

Hence, in this case, it is concluded that Centra Bank is vital in the economic development of any nation.

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