   
|
|
|
|
Central Bank
|
A central bank is fundamentally a chief bank of a given nation. The essential responsibilities of the central bank include issuing and maintaining a stable influx of currency, ensuring optimal employment, and keeping inflation under control. Other tasks of the central bank consist of holding deposits on the reserves of other banks, as well as overseeing lending and exchange practices of commercial lenders. The central bank also plays a vital role of reserving the nation’s emergency funds. In the United States the Federal Reserve System acts in the capacity of a central bank. In addition, the central bank of the United States, or “the fed”, sustains interest rates through executing the monetary policy and trading U.S. Treasury bonds known as T-bills. The central bank also serves the nation by facilitating business conduct and protecting the public interest.
Rate this Central Bank definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
