Central Bank

A Central Bank is a financial institution that is responsible for managing a country’s currency, money supply, and interest rates. It acts as a bank for the government and commercial banks, overseeing the monetary policy of the nation. Central banks have the authority to issue currency, regulate the banking system, and implement policies aimed at maintaining economic stability and controlling inflation. They often use tools such as open market operations, discount rates, and reserve requirements to influence the overall economy. Central banks also play a crucial role in financial stability and may act as a lender of last resort during financial crises. Examples of central banks include the Federal Reserve in the United States, the European Central Bank in the Eurozone, and the Bank of England in the United Kingdom.