Diskusi 2 Bhs Inggris Niaga
Diskusi 2 Bhs Inggris Niaga
Diskusi 2 Bhs Inggris Niaga
After studying the second session topic entitled What Central Banks Do? and
also read the additional material. Do you agree if every country must have a
Central Bank? Why?
Jawaban:
Yes, I do agree that every country must have a central bank. As we know central bank is a lender of last
resort, which means central bank take big responsiblity for providing its nation economy with funds
when commercial banks cannot cover a supply storage. Central bank has influence the national
economic since the establishment of the Bank of England in 1694. According to the topic above there
are 3 important role of central bank in a country:
• Central banks carry out a nation's monetary policy and control its money supply, often
mandated with maintaining low inflation and steady GDP growth.
• On a macro basis, central banks influence interest rates and participate in open market
operations to control the cost of borrowing and lending throughout an economy.
• Central banks also operate on a micro-scale, setting the commercial banks' reserve ratio and
acting as lender of last resort when necessary.