Central Bank

This refers to a government institution that manages the state’s currency, money supply, and interest rates.

Examples of Central Banks include the Bank of England (governing Sterling), the European Central Bank (governing the Euro) and the Federal Reserve of the United States (governing the US dollar). Central Banks may also have supervisory powers over commercial banks and financial institutions under their jurisdiction and may also act as ‘lender of last resort’ to the banking sector in the event of a crisis.

Central Bank is a term normally found in business economics and financial management.

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