With the spread of credit cards,debit cards and e cash,people will want to hold less and less money,and the central bank will have no role.Critically evaluate this view.
2006-11-24 14:02:49 · 4 answers · asked by centurica 1 in Social Science ➔ Economics
The central banks role is more than that. They regulate overall banking function, ensure that banks keep cash to cover a % of their customers, they study and analyze the economy of the country and the influence on the world's economy as well as print money, produce coins, keep gold reserves and foreign exchange for the government and set interest rates.
2006-11-24 15:58:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
They only role of a central bank is to keep money neutral in the economy. When money is not neutral, you get things like the great depression.
2006-11-25 04:55:49 · answer #2 · answered by OPM 7 · 0⤊ 0⤋
2 points
2006-11-24 22:04:27 · answer #3 · answered by Anonymous · 0⤊ 1⤋
There's still loans, mortgages, investments going on...
2006-11-24 22:04:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋