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Are central banks a socialist idea?

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Elian Collins

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Q: Are central banks a socialist idea?
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Yes. Central banks are independent entities and they have the right to make rules and policy decisions governing the banks in their country.


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Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.


How does the central banks control the interest rates?

Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.


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What has the author Ralph J Mehnert-Meland written?

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