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The central banks play a very important role in the economic policy formation and execution. These are the big players in an economy that controls the flow of money in an economy. They help in formation of various policies, issue various guidelines for the banking system, issue of various banking rate, etc.
Read MoreThe banking system plays one of the most crucial roles in the global economic system. The banks act as the intermediary in between the depositors and the borrowers of an economy. In fact the banks channelize the savings of the depositors to the entrepreneurs. This is however the basic function of the banking system.
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