The various methods or instruments of credit control used by the central bank can be broadly classified into two categories: Methods of Credit Control: 1. Quantitative or general methods, and 2. Qualitative or selective methods. 1. Quantitative or General Methods: The methods used by the central bank to influence the total volume of credit in the banking system, without any [...]
A number of economists have investigated the relationship between macroeconomic performance and the degree to which central banks are insulated from partisan politics. They have examined the legal and institutional framework within which central banks in different countries operate, and constructed indexes of the extent to which their central banks are independent. Many researchers have constructed an index of central [...]
The following points highlight the top twelve functions of the central bank. The functions are: 1. Control of bank credit 2. Monopoly of note-issue 3. The banker to the government 4. The banker to other banks 5. The lender of the last resort 6. Control and supervision of other banks 7. The custodian of the nation's gold and foreign exchange [...]