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Who owns the European central bank?
The same people who own the Federal Reserve and who owned the first national bank of America, The Second national bank of America, The Bank of England... The same people who has been responsible for almost every war on earth... The Rothschild A.K.A. the Illuminati who are satanist. No they are not Jewish but they pretend to be. They want us to hate everyone so while we are fighting each other they can own us all and laugh in the background. RISE UP FIGHT THE POWER! and God be with you. :)
Why do you need a central bank?
Banks are the financial intermediaries of any economy. They accept deposits from customers who have surplus cash and use it to lend loans to other customers. If they are let to function without any supervision, they can cause chaos in the economy. They can work in a way that will generate profits for them and forget the customer interest. That is why, we need central banks. The purpose of central banks is to supervise the banking operations of all member banks in the country and ensure that they operate in a fair manner and dont underprivilege the customer. Reserve bank of India is the central bank of India and Federal Reserve is the central bank of USA. They aim to supervice and control all banks that operate in India and USA. similarly, each country has its own central bank
What is the central bank and who control it?
Central banks are the regulator or supervisors of banking operations in a country. All member banks that operate in a country have to follow the rules laid down by them. The government of the country usually controls their operations but in most cases they have powers to take decisions on their own.
How does monetary policy determine exchange rate?
the ability of a country to make its own money and to set its own interest rates. the supply of money and interest rates. MONETARY POLICYMonetary policy is the oldest policy for the economic stability. It is a policy which is adopted by the central bank of the country to control the supply of money: We can say that all those methods which are adopted by central bank, of the country to control the supply of money are called the monetary policy. In simple words, monetary policy means monetary management. In the words of Harry G. Johnson, "It is a policy of central bank to control the supply of money with the aim of achieving macroeconomic stability". Tools Of Monetary Policy They are classified into 1. Quantitative Methods 2. Qualitative Methods 1. Quantitative Methods: They consists of those methods which Physically affect the amount of credit creation in the economy. They are as: 1) Changes in Bank Rate Policy or Rediscount Rate: The rate at which the central bank of the country gives loans to commercial banks is known as Bank Rate or re-discount rate, In Pakistan; State Bank charges 10% as bank rate. By changing such rate of interest, the central bank can influence the supply of money in the country. To control inflation the central bank increases the rate of interest. The commercial banks will also increase their rate of interest. Accordingly, the loans will decrease, investment, output and prices will fall. In this way, inflation will be controlled. Now, we assume that the country is facing deflation. To remove deflation central bank will decrease the bank rate, the commercial banks will also decrease the rate of inl91'Cst. In this way, people will get more loans. Investment production, employment and Prices will start rising up. Accordingly, deflation will be controlled. Limitations: But the success of the bank rate policy depends upon * The fact that how flexible is the economic system. How rapidly, there will be the effect of bank rate on other variables of the economy, like prices, wages, Interest and output, etc. * Commercial banks should abide by the instructions of the central bank. If the central bank brings changes in the rate of interest, the commercial banks should also change the rate of interest. * If commercial banks already have excess reserves then commercial banks will not depend upon central bank. It this way, they will not care for changes in the rate of interest from central bank. * If economic activity is flourishing or economy is having boom, then the business class will be prepared to pay even higher rate of interest and inflation will not to be controlled. 2) Open Market Operation .. This is the second instrument of the monetary policy. Under this technique, the central bank sells or purchases 'government securities. If the central bank finds that commercial banks are providing excessive loans which are creating inflation. To remove the inflation, the central bank sells the government securities. The commercial banks will purchase these securities to earn interest against such securities. In this way, the resources of commercial banks will go down. They will advance less loans. Accordingly, the inflation will be controlled. If there is deflation in the economy. To control the deflation, the central bank purchases the government securities. Then the monetary base of the commercial banks will increase their loaning power will increase. As a result, investment will increase, income and prices will go up. LimitationsThe problem is that, in most of the countries the money market is not organized where the securities could be sold or bought. The funds which are collected through sale of government securities should not be spent on unproductive fields. 3) Changes in Reserve Requirements Each commercial bank has to keep a certain proportion of its deposits in the form of reserves just to meet the demands of the depositors. As in the case of Pakistan, each commercial bank has to keep 30% of its deposits to meet the needs of its depositors. The central bank can influence this reserve rate. If the central bank realizes that the commercial banks are advancing excessive loans, it will increase the reserve requirements. Accordingly, commercial banks could advance less loans. On the other hand, in deflation, if the central bank reduces the reserve requirements, the commercial banks will be able to advance' more loans. Hence, deflation could be removed. 4) Changes in Reserve CapitalEach commercial bank has to keep a certain ratio of its deposit with central bank. In case of Pakistan, each commercial bank has to keep 5% of its deposit in the central bank. By changing the reserve capital, a central bank can control the supply of money by commercial banks. When there is inflation in the economy. To remove this inflation, the central bank will increase the reserve ratio. As a result, lending of commercial banks will fall. As a result the supply of money will decrease. On the other hand, if central bank decreases the 'reserve ratio, the commercial banks will be having more funds to advance. Accordingly, the deflation could be controlled. 5) Changes in Marginal Requirements Commercial banks do not give loans against leaves, rather they ask for pledges to make. How much a person will have to pledge is settled by the central bank. This is given the name of marginal requirement. The central bank can bring changes in the marginal requirements. If there is inflation in the economy, the marginal requirements will increase. In this way, people will get less loans. As a result, supply of money will decrease. During deflation the marginal requirements are decreased. Hence people will get more loans from the commercial banks. As a result supply of money will go up and deflation will be controlled. 6) Credit Ceiling/Rationing of Credit The central bank can issue directions that loans will be given to commercial banks upto a certain limit. As a result, the commercial banks-will be careful in advancing loans to the people. But this is a very strict method, hardly adopted by the central bank. Moreover, if the commercial banks are having other sources to borrow, they will not bother for this policy. 2) Qualitative Methods * Moral Suasion: It is concerned with just as a moral request by central bank to commercial banks that loans should not be given for unproductive fields which create inflation. Loans should not be given for speculative purposes and hoarding. But such like requests could be effective in the developed countries. * Consumers Credit Control: This instrument is applied during inflation. If the central bank wants to control the supply of money, it will issue directions to commercial banks that loans should not be advanced for consumption purposes or for consumer durables because they create inflation. * Direct Action: The instrument of direct action is concerned with the policy of central bank against commercial banks. It can refuse to give loans to commercial banks. The central bank will not advance loan to commercial banks for the sectors which create inflation. Moreover, if commercial banks do not follow the instructions of the central bank, It will refuse to lend commercial banks * Publicity: The central bank of the country is the overall in charge of economic stability of the country. Its aim is to protect the economy from inflation and deflation. For this purpose, it analyses the whole economy. It keeps an eye over the activities of the commercial banks. If the commercial banks are found advancing loans which create inflation, their activities will be unhealthy for whole economy. The central bank can black list such banks. Thus to avoid such bad reputation in' future, they will be careful in advancing loans. By: Shafaq Chohan
What is free market?
an economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority.
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/
What does the Rothschild family of London own?
everything including the City of London itself. when they own the central bank of England so the City of London is just a small part of their Empire , they also own the federal reverse which is not own by the government of the United state of America like Rome, it does not own the Vatican
Can the state of Missouri own and operate a state bank in order to manage state funds?
No state bank shall be created. Article XI Section 13 of the Missouri Constitution.
Is there a central location for college recruitment?
There is not a central location for college recruitment, each state has its own recruitment location
What is the definition of a state cooperative bank?
A co-operative bank is a type of bank that provides financial services to co-operatives and organizations that its members own. When the state runs these banks they are called state co-operative banks.
How can you say this in your own words the food bank of central Louisiana is a nonprofit organization whose mission is to alleviate hunger in central Louisiana?
The Food Bank of Central Louisiana is a government-recognized private entity that seeks to provide residents with consistent access to a variety of foods.
Does each state have have its own government?
Each state is under the national government, but they also have individual governments,
How many branches of State Bank Hyderabad bank in India?
sbi have at about 16000 branches and 8500 ATM centres in India,the 10000th branch was recently inaugurated by honorouble defence minister p.chidambaram at his own constuency....................!
Should a state have the right to secede from the Union?
It should have a right because its it own state
Is physically handicapped officer can get transfer in his own district in state bank of India?
yes
Who owns the European central bank?
The same people who own the Federal Reserve and who owned the first national bank of America, The Second national bank of America, The Bank of England... The same people who has been responsible for almost every war on earth... The Rothschild A.K.A. the Illuminati who are satanist. No they are not Jewish but they pretend to be. They want us to hate everyone so while we are fighting each other they can own us all and laugh in the background. RISE UP FIGHT THE POWER! and God be with you. :)
What was the basic problem with the articles of confedration?
The articles had no plan for a central government. Each state was their own.
