Economics

elasticity

flexibility.

economy

certainty

Amount of borrowing increases

Amount of borrowing decreases

Supply of money increases

Commercial banks are not affected

Compensate their customers for losses

act as lender of last resort

help in maintaining monetary stability in a nation

help in mobilizing savings for investment

trading

mining

agriculture

manufacturing

poor coordination between local and national governments

exportation of more primary products

lack of educational institutions in those countries

urban-rural migration of citizens