4.2.4.3 Central Banks (AQA A-Level Economics Teaching PowerPoint)

This AQA Teaching Paragraph covers aspects of the role of Central Banks

The key roles of central banks include:

• Monetary policy: Central banks set interest rates and control the money supply to influence the economy.
• Financial stability: Central banks work to ensure the stability of the financial system by regulating banks and other financial institutions.
• Managing the currency: Central banks print and issue currency, manage its value, and oversee its distribution.
• Lender of last resort: Central banks act as a lender of last resort, providing emergency loans to banks and other financial institutions during times of crisis.
• Financial supervision: Central banks supervise the financial system to ensure that financial institutions are operating safely and following regulatory requirements.
• Research: Central banks conduct economic research and analysis to inform their policy decisions.