What is the role of the central bank on the financial system? Explain what policies they implement, how would be implemented and their effects on the financial system.

Financial Institutions & Markets  

Would you prefer independent or dependent central bank? Why? (3 points) 500 words

What is the role of the central bank on the financial system? What policies they implement, how would be implemented and their effects on the financial system. When should central bank implement those policies? (4 points) 500 words

Contractionary monetary policies in Saudi Arabia last for more than one year and expected to last further (but with slower increase in interest rate); how should financial institution react to this? (3 points). 500 words

 

What is the role of the central bank on the financial system? Explain what policies they implement, how would be implemented and their effects on the financial system.
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