What is the main function of a 'Central Bank'?
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Answer & Solution
Solution:
The primary function of a central bank is to oversee and implement a country's monetary policy and regulate its banking system. This includes managing interest rates, controlling the money supply, and ensuring financial stability. Central banks, such as the Bangladesh Bank, are responsible for formulating and implementing monetary and credit policies to maintain price stability and support economic growth. They also supervise financial institutions to ensure a robust and secure financial system.
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