differentiate between Central Banks and other banks​

Answers

Answer 1

Commercial banks serve individuals and businesses, while central banks serve the country's banking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.


Related Questions

what is a bond? in your own words. financially.​

Answers

Answer: to me a bond is a very close friendship that is official and that is well known to the world

Explanation:

In finance, a bond is a fixed income instrument that represents a loan made by an investor to a borrower. Hope this helps!

What are some potential positive outcomes of filing for bankruptcy?

Answers

Answer:

An automatic stay against creditors. Once you file, the court automatically issues this stay against any and all debt collection activity.

Dischargeable debts.

Bankruptcy exemptions might allow you to maintain ownership of your property after bankruptcy.

Credit Score.

define default economics.​

Answers

Answer:

Default is the failure to repay a debt, including interest or principal, on a loan or security. A default can occur when a borrower is unable to make timely payments, misses payments, or avoids or stops making payments.

Explanation:

Answer:

the failure to repay a debt

Explanation:

the failure to repay a debt

Jonas has been assigned to work with a team at Falk Enterprises, Inc. Jonas has supervised this team in the past, and they have always failed to produce results on time. One of the difficulties previously cited by the team was confusion over the roles each team member played. Discuss some the possible roles each of these team members could play and some steps Jonas could take to avoid frustration and delay with this project.

Answers

Answer:

There should be defined roles of all the team members and they should know their responsibilities.

Explanation:

Jonas should clearly assign tasks of the project to his team members and each member should be accountable for his task. Jonas should teach his team about the significance of time management and therefore task must be completed before deadlines. Each member of the team must have defined responsibilities and roles.

Which tax withholding is required by the federal government?

Answers

Social Security tax

Based on the Taylor Rule use the following information to calculate the target federal funds rate.

Variable Value
Target inflation rate 2 percent
Current inflation rate 1 percent
Real equilibrium federal funds rate 2 percent
Output gap 10 percent

Answers

Answer:

8.0 %

Explanation:

inflation gap = 3 - 2 = 1

=3 + 2 + (.5 x 1) + (.5 x 5)

= 8.0

According to the Taylor Rule, target federal funds rate is 8%.

What is the Taylor Rule?

A targeting rule for monetary policy is the Taylor rule. American economist John B. Taylor suggested the rule in 1992 as a tool for central banks to employ in order to stabilize economic growth by appropriately fixing short-term interest rates. The rule takes into account changes in real income, the level of prices, and the federal funds rate.

In accordance with the rule, the federal funds rate should be higher when inflation is greater than the Fed's inflation objective and lower when inflation is lower.

By following the Taylor principle, inflation-inducing shocks—whether they are supply or demand shocks—raise real interest rates because nominal rates grow more rapidly than inflation, which lowers production and controls inflation while maintaining economic stability.

inflation gap = 3 - 2 = 1

=3 + 2 + (.5 x 1) + (.5 x 5)

= 8.0

To learn more about Taylor Rule

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what is commercial bank? in your own words. ​

Answers

Answer:

a commercial Bank is a type of banks that provide services such as accepting deposits making business loan etc

Explanation:

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