They mobilize short-term funds to finance economic activities by the government and the private sector
They are a medium for central bank monetary policy: managing the banking systems liquidity, influences short term interest rates. Controls inflation and influences development in the exchange rate
They provide a medium for commercial banks to manage their funds by allowing them to lend their temporary surplus funds and borrow funds to support their lending commitments
Dana05 answered the question on July 15, 2019 at 14:53
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