Commercial banks deposits with the Central Bank help to?
Answer Details
Deposits made by commercial banks with the Central Bank help to control the supply of money credits. When commercial banks deposit their excess reserves with the Central Bank, they are reducing the amount of money available for lending, which helps to regulate the supply of money in the economy. This is important in controlling inflation and maintaining price stability. The Central Bank can also use these deposits to influence the interest rates that commercial banks charge for loans, which can further influence the overall supply of money in the economy.