What are the primary functions of Central Banks?
Check this site.
http://en.wikipedia.org/wiki/Central_bank
The primary functions of central banks include:
1. Monetary Policy: Central banks are responsible for formulating and implementing monetary policy. They use various tools such as interest rate adjustments and open market operations to control the money supply, manage inflation, and stabilize the economy.
2. Currency Issuance: Central banks have the authority to issue and control the supply of currency in a country. They ensure that an adequate supply of currency is available to meet the needs of the economy.
3. Bank Regulation and Supervision: Central banks play a crucial role in regulating and supervising the banking sector. They establish and enforce prudential regulations to maintain the stability and integrity of the financial system.
4. Lender of Last Resort: Central banks act as lenders of last resort during financial crises or liquidity shortages. They provide emergency funding to banks and financial institutions to prevent systemic risks and maintain financial stability.
5. Foreign Exchange Management: Central banks manage and regulate the country's foreign exchange reserves. They intervene in the foreign exchange market to stabilize exchange rates and maintain the competitiveness of the domestic currency.
To find more detailed information about the functions of central banks, you can refer to reliable sources such as official central bank websites, academic papers, textbooks on monetary economics, and reputable financial news sources.