Monetary System

A monetary system is the framework that a country uses to manage its money. It includes the creation, distribution, and regulation of currency, as well as how it interacts with banks, government, and businesses. This system ensures there is enough money in circulation to support economic activities, while maintaining stability and controlling inflation. Central banks play a key role by setting interest rates and controlling money supply. Overall, a sound monetary system helps facilitate trade, investment, and economic growth by providing a reliable means of exchange and store of value.