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Describe role of central banks globally

Describe role of central banks globally

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The role of the central bank is to as a independent authority at the national level is to regulates all the functioning of the banks, it conducts a monetary policy and controls the money supply in the economy. The goal of the central bank is to ensure that the price levels are low, prevent inflation and keep the level of unemployment low in the economy. It keeps the value of the currency of the country stable by keeping a check on inflation. It has the sole responsibility of printing the currency and coins in circulation. It is the lender of last resort as it provides financial support to the banks in the financial system and the banks keep a certain section of their cash reserves with the central bank.

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