Central bank – Definition and Its Function

The central bank is the institution responsible for the ongoing activities of the banks, together with other tasks and powers, the main ones of which are: authority to print money under certain circumstances, the authority set the base level of interest in the economy, the authority to set the level of loans the banks are permitted to provide to the public. The central bank is supposed to assist the government in attaining three central national aims: low inflation, economic growth and full employment.