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Meaning / Definition of

Central Bank

Categories: Banking, Economics,

Most countries have a central bank, which issues the country's currency and holds the reserve deposits of other banks in that country. It also either initiates or carries out the country's monetary policy, including keeping tabs on the money supply. In the United States, the 12 regional banks that make up the federal reserve system act as the central bank. This multibank structure was deliberately developed to ensure that no single region of the country could control economic decision making.

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