The bank type responsible for the formulation of rules and regulations guiding the banking industry is known as?

  • A Commercial bank
  • B Central bank
  • C Mortgage bank
  • D Merchant bank
jamb 2018economics

The correct answer is B. Central bank

The central bank is the highest financial institution in a country which carries out the monetary policy of the government.

The central bank controls regulates and supervises the components of the banking system.

It lays down rules and regulations to be followed by all banks to ensure smooth operation.

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