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What else can I help you with?
Why is the supply of money in an economy not solely determined by central bank?
The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
Why can't the central bank control the money supply completely?
The central bank cannot control the money supply completely because it relies on financial institutions and the public's behavior in the economy. For instance, when banks lend money, they create deposits, which expands the money supply beyond the central bank's direct influence. Additionally, factors like consumer confidence, demand for loans, and the velocity of money can vary, affecting the overall money supply in unpredictable ways. These dynamics make it challenging for central banks to exert total control.
How can you expand Central Bank Balance Sheet?
Central Bank create money by adding zeros in it's money account, and destroy money by remove zeros in it's money account In principle, they can create what ever amount of money they want, but for each created money, there should be same value of products/services generated in the country, otherwise there will be inflation http://www.investopedia.com/articles/economics/10/understanding-the-fed-balance-sheet.asp#axzz1hBREM3te
Is commodity bank commercial bank?
No, it is not. A commercial bank uses deposits and loans to create money out of thin air. A commodity bank uses real money and cannot create money from nothing.
How does one create an account at central pacific bank online?
You must be a member of Central Pacific bank to create an account online. You will need your basic info as well as your account number. you can visit the bank's webpage to create your account.
Can a single bank create money?
Banks do not create money. They store it. The government prints money.
How do you create bank on doodle god?
money+skyscraper=bank
Why is only the central bank that prints money?
Because central bank, reserve bank, or monetary authority is an institution that manages a nation's currency, money supply, and interest rates. it is the mother of all financial institution within the country it is the monetary policy maker. all country has its own central bank. yeah its true that the central bank prints money but only prints when there is a lot of gold reserve in the bank/
Where does a bank keep money?
Banks keep their money in safe vaults. A portion of their money is deposited with the central bank of the nation too.
Where does the money in central bank reserves comes from?
The Treasury
What is a bank rate?
A bank rate is the rate at which a central bank charges interest when it lends money to another bank.
How do banks create money and what is the process involved in this financial mechanism?
Banks create money through a process called fractional reserve banking. When a bank receives a deposit, it is required to keep only a fraction of that deposit on reserve and can lend out the rest. This allows the bank to create new money through loans, which in turn increases the money supply in the economy. This process is regulated by central banks to ensure stability in the financial system.
