Central Bank


Central Bank
The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort.

The central banking system in the U.S. is known as the Federal Reserve System (commonly known as "the Fed"), which is composed of 12 regional Federal Reserve Banks located in major cities throughout the country. The main tasks of the Federal Reserve are to supervise and regulate banks, implement monetary policy by buying and selling U.S. Treasury bonds and steer interest rates. Ben Bernanke currently serves as the chairman of the Board of Governors of the Federal Reserve.


Investment dictionary. . 2012.

Look at other dictionaries:

  • central bank — see bank Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. central bank …   Law dictionary

  • central bank — n. 1. the main, centralized bank of a nation, responsible variously for implementing monetary policy, issuing currency, handling banking transactions for the government and other banks, etc. 2. any of the twelve district banks of the Federal… …   English World dictionary

  • central bank — Canada Bank of Canada; United States Federal Reserve Bank. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • central bank — n a national bank that does business with the government, and controls the amount of money available and the general system of banks …   Dictionary of contemporary English

  • central bank — noun count a national bank that controls a nation s policies on money and INTEREST RATES …   Usage of the words and phrases in modern English

  • central bank — ► NOUN ▪ a national bank that provides services for its country s government and commercial banking system, and issues currency …   English terms dictionary

  • Central bank — Part of a series on Government Public finance …   Wikipedia

  • central bank — a bank, as the Federal Reserve Bank, that holds basic banking reserves, issues currency, and acts as lender of last resort and controller of credit. [1920 25] * * * Institution, such as the U.S. Federal Reserve System, charged with regulating the …   Universalium

  • Central Bank — A government bank that regulates a country s banks and manages a nation s monetary policy. The Federal Reserve is the central bank in the United States, whereas the European Central Bank ( ECB) is the central bank of the European Monetary Union.… …   Financial and business terms

  • central bank — A country s main bank whose responsibilities include the issue of currency, the administration of monetary policy, open market operations, and engaging in transactions designed to facilitate healthy business interactions. Bloomberg Financial… …   Financial and business terms

  • central bank — noun a government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government • Hypernyms: ↑financial institution, ↑financial organization …   Useful english dictionary


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