Principles of Macroeconomics / Unit 12 MAC 1101 short lesson, about 20 seconds
What a Central Bank Does
Captions available
The idea
A central bank conducts monetary policy, supervises banks, and provides banking services to banks and to the government. It is a bank for banks rather than for households.
In practice
Most countries have one, and they differ in structure more than in function.
Where people slip
Two of those jobs are separate: setting policy and regulating banks.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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