I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?
Attempt both questions. Both questions carry equal marks.
Question – 1
Explain the structure and role of central bank in the financial stability of the country.
Also give your opinion, whether central bank should be independent or not?
Question – 2
Explain international reserves. Why countries trade their securities internationally
and also comment why and how China accumulated over $3 trillion of international
reserves?