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How does the bangko sentral ng pilipinas control the supply of the money?
They control it for the Philippines...that is what the central banks of each country do...and they co-operate with each other too. Who should?
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.
Why is the money supply curve vertical?
The money supply curve is vertical because the central bank has the ability to control the amount of money in circulation by adjusting interest rates and implementing monetary policy. This means that the supply of money is not determined by market forces, but rather by the decisions of the central bank.
How do central bank control the quantity of money in circulation?
Central banks control the quantity of money in circulation by printing more bills when the central storage is low and refraining from printing when the country is suffering from inflation.
How do central banks impact the global economy?
They influence the national money supply,which affects the volume of international trade.
How does the bangko sentral ng pilipinas control the supply of the money?
They control it for the Philippines...that is what the central banks of each country do...and they co-operate with each other too. Who should?
What agencies determined money supply?
Money supply is determined exogenously by the monetary authority usually central bank of a country.
Why is the money supply curve vertical?
The money supply curve is vertical because the central bank has the ability to control the amount of money in circulation by adjusting interest rates and implementing monetary policy. This means that the supply of money is not determined by market forces, but rather by the decisions of the central bank.
Who is responsible for the making of money?
Government institutions, such as central banks, are typically responsible for the production and regulation of money within a country. They control the money supply, issue currency, and implement monetary policies to stabilize the economy.
How do central bank control the quantity of money in circulation?
Central banks control the quantity of money in circulation by printing more bills when the central storage is low and refraining from printing when the country is suffering from inflation.
How do central banks impact the global economy?
They influence the national money supply,which affects the volume of international trade.
Why do the actions of central banks have an important effect on the global economy?
Control of the money supply determines how much money is available for international trade.
How the the tools used by the Federal Reserve to control the money supply influence the money supply and in turn affect macroeconomic factors?
The economy of a country is affected by an infinite number of factors.
Should the federal reserve control the money supply?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
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.
What is the role of Central bank of Kenya?
supervise other member banks control the flow of money in the country
What is the meaning of repo rate by RBI of India?
Discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities for cash), to contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets the market determine the appropriate repo rate.
