What is a Central Bank?
A Central Bank or reserve bank, by definition, is the organization within a specific country or coalition of countries that regulates all of the currency supplies and related policies for that particular area. A Central Bank will perform various actions, but its most important job is to make certain that the national currency and money supply remain stable. Depending on the country, Central Banks may be government owned and controlled or may be run under regulations that are specifically created to prevent extensive government interference. The specific functions of a Central Bank may include many different tasks. A Central Bank has responsibilities that may include distribution of currency and implementation of monetary policy. Regulating the banking industry and setting official interest rates may also be jobs of the Central Bank. Some countries ask their Central Bank to be the government’s bank and also a lender to smaller banks, allowing them an out within difficult times. In the U
