mayranebrida4 mayranebrida4
  • 10-11-2020
  • Arts
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What will happen if the Central Bank does not perform its fubctiins well?​

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faithl324629
faithl324629 faithl324629
  • 20-11-2020

Answer:

If banks get into liquidity shortages then the Central Bank is able to lend the commercial bank sufficient funds to avoid the bank running short. This is a very important function as it helps maintain confidence in the banking system. If a bank ran out of money, people would lose confidence and want to withdraw their money from the bank.

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