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Central Bank Names Of Different Countries Static Gk For Bank Exams Video Lecture | General Knowledge (GK) Tricks (In Telugu) - Government Jobs

FAQs on Central Bank Names Of Different Countries Static Gk For Bank Exams Video Lecture - General Knowledge (GK) Tricks (In Telugu) - Government Jobs

1. What is a central bank?

Ans. A central bank is a financial institution responsible for managing a country's money supply, controlling interest rates, and ensuring the stability of the financial system. It also acts as the government's bank and regulates the commercial banking sector.

2. Why are central banks important for the economy?

Ans. Central banks play a crucial role in the economy by implementing monetary policies to control inflation, stabilize prices, and promote economic growth. They also act as lenders of last resort to provide liquidity in times of financial crises and maintain the stability of the banking system.

3. Which country has the Federal Reserve as its central bank?

Ans. The United States has the Federal Reserve as its central bank. It is responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability in the country.

4. Name the central bank of India.

Ans. The central bank of India is called the Reserve Bank of India (RBI). It is responsible for formulating and implementing monetary policies, managing the country's foreign exchange reserves, and regulating the banking sector.

5. What is the role of a central bank in controlling inflation?

Ans. Central banks use various tools to control inflation, such as adjusting interest rates, open market operations, and reserve requirements for banks. By increasing interest rates, the central bank aims to reduce borrowing and spending, thereby curbing inflation. Conversely, lowering interest rates stimulates borrowing and spending to boost economic growth.

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Oct 17, 2025 Last updated

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