Central Bank (Noun)
Meaning
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.
Classification
Nouns denoting groupings of people or objects.
Examples
- The Federal Reserve in the United States is an example of a central bank that plays a crucial role in the country's monetary policy.
- In many countries, the central bank acts as a lender of last resort to commercial banks during times of economic distress.
- The central bank's decision to increase the interest rates had a ripple effect on the entire economy.
- A country's central bank can influence the exchange rate by buying or selling foreign currencies.
- The central bank is responsible for maintaining the stability of the financial system and controlling inflation.