Skip to content

Course home

x
Sign up
x

What does a central bank do?

What does a central bank do?

Flow diagram showing a central bank's four functions: monetary policy, banker to government, banker to banks and lender of last resort, and financial regulation, with a causal chain from the safety net to moral hazard

A central bank is the public body responsible for monetary policy and the stability of the financial system. Unlike a commercial bank, it does not primarily seek profit by lending to households and firms.

4.4.3 Role of central banks Lesson

  1. A Level
  2. /Economics
  3. /4.4.3 Role of central banks

Step-by-step lessons on Edexcel A A Level Economics 4.4.3 Role of central banks. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons