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Central Banking 101: A Guide to the Heart of Economic Policy [Video]

Central Banking 101: A Guide to the Heart of Economic Policy

In this video, you will learn about central banks and their functions.

#centralbank #economy #wallstreetmojo #monetarypolicies #economicstability

Chapters:
00:00 – Introduction
00:48 – What is a central bank?
02:01 – Functions of central banks
03:54 – Example
05:56 – Conclusion

What is a central bank?
A central bank is a financial institution responsible for regulating a country’s monetary policy, managing its currency, and overseeing the banking system. The primary objective of a central bank is to maintain stability in the country’s economy.

Functions of central banks
1. Base Rate Setting
2. Money Supply Control
3. Maintaining The Required Level Of Reserves
4. Maintaining Foreign Exchange Reserves

Example
The Federal Reserve System, also known as the Fed, is the central bank of the United States. The Fed was created in 1913 to provide a stable financial system and promote economic growth.

The Fed has three essential functions: conducting monetary policy, supervising and regulating banks, and providing financial services to the government.

The Fed uses various tools to manage the money supply, such as setting interest rates and purchasing or selling government securities.

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