What is the ‘relationship’ between central banks and commercial banks?

Written By: jacob on November 24, 2009 One Comment

What do they deal with commercial banks and how do they deal it?

Karia on: 24 November 2009 at 4:37 am

Central banks are supposed to implement a country’s fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks.