The main functions of a central bank.

• What is a central bank?:

  • A central bank is responsible for operating monetary policy and maintaining financial stability
• What is a central bank?

  A central bank is responsible for operating monetary policy and maintaining financial stability
• Main functions of a central bank:

  • Setting the interest rate
  • Regulating the banking system
  • Acting as a banker to other banks and the government
  • Acting as a lender of last resort
  • Providing information to the markets
  • Managing the money supply
• Main functions of a central bank:

  • Setting the interest rate
  • Regulating the banking system
  • Acting as a banker to other banks and the government
  • Acting as a lender of last resort
  • Providing information to the markets
  • Managing the money supply
• What is monetary policy?:

  • Monetary policy is changes to interest rates the money supply and changes to the exchange rate to influence aggregate demand
• What is monetary policy?

  • Monetary policy is changes to interest rates the money supply and changes to the exchange rate to influence aggregate demand