Opplæringskontoret for Indre Hordaland

Sentralbank

A central bank is a financial institution that is responsible for managing a country’s currency, money supply, and interest rates. It serves as the primary authority on monetary policy and typically maintains the stability of the national currency and financial system. Central banks regulate and oversee commercial banks, serve as a lender of last resort, and conduct government banking functions. They may also be involved in setting inflation targets and managing foreign exchange and gold reserves. Some of the most well-known central banks include the Federal Reserve in the United States, the European Central Bank in the Eurozone, and the Bank of England in the United Kingdom. The overarching goal of a central bank is to promote economic stability, growth, and confidence in the country’s financial framework.