Central Bank Definition. What exactly is a Central Bank

Central Bank Definition. What exactly is a Central Bank

Functions of Central Bank

You will find four primary functions of the bank that is central. These are typically – setting the beds base price, get a handle on the cash supply through available market operations, make sure banking institutions keep reserves, and get a grip on the countries reserves of foreign currency.

Base Price

Among the main banking institutions leading functions may be the environment regarding the rate of interest. Also called the beds base price, it sets an interest rate which commercial banking institutions can borrow through the main bank. Continue reading →