Central Bank

Discipline: Economics

Central bank is the principal authority in an economy that regulates the country's monetary system.

Central banks typically issue currency, control the money supply, and make policies to ensure the stability of currency. Other duties of central banks include overseeing commercial banks, managing exchange reserves, and controlling interest rates.

Central banks are sometimes referred to as the 'lenders of last resort,' since they are expected to lend to the commercial banks in the country in the case of a financial crisis.

bank money, bank reserves

Share

Facebook Twitter