CENTRAL BANKS AND WEBSITES
A central bank is an institution providing financial stability for the economy. Central banks are responsible for implementing their country's monetary policy by adjusting the level of interest rates.
- Central banks adjust the level of interest rates to achieve price stability and high employment in the economy
- Most major central banks target a 2-3% annual inflation rate
Responsibilities & Policies
□ Central banks are responsible for overseeing the domestic monetary system and regulating the domestic financial sector
□ Central banks control the money supply in the domestic market by adjusting the level of interest rates
□ Central banks are responsible for implementing the nation's monetary policy by easing or tightening the level of liquidity in the credit market