Why does a modern industrial economy need a central bank

Reference no: EM131353816

1. Why does a modern industrial economy need a central bank?

2. What are some reasons behind the worldwide trend toward greater central bank independence? Are there arguments on the other side?

3. Explain why the quantity of bank reserves supplied normally is higher and the quantity of bank reserves demanded normally is lower at higher interest rates.

Reference no: EM131353816

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