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A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states. It is a bank that can lend money to other banks in times of need. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. Most richer countries today have an "independent" central bank, that is, one which operates under rules designed to prevent political interference. Examples include the European Central Bank (ECB) and the Federal Reserve System in the United States. Some central banks are publicly owned, and others are privately owned. For example, the United States Federal Reserve is a quasi-public corporation. From Wikipedia under the
GNU Free Documentation License  d.yimg.com 288px x 410px | 112.40kB [source page] Gold bars pictured at a bank depot A group of 19 European central banks announced on Friday they would cap gold sales at 2 000 tonnes over the next five years and stressed the importance of gold to the international monetary system  images.theglobeandmail.com 266px x 188px | 15.90kB [source page] Commodities jump as investors bet initiatives will spur global growth but also spark inflation  econ.iastate.edu 378px x 600px | 108.90kB [source page] During this period from 1958 to 1971 the US not only witnessed a gradual depletion of its international reserve assets but also a dramatic increase in liabilities to foreign central banks Move your mouse to Figure 2a During this period from 1958 to 1971 the US not only witnessed a gradual depletion of its international reserve assets but also a dramatic increase in liabilities to foreign central banks Move your mouse to Figure 2a From Yahoo Image Search: "central banks"  ghanavoices.wordpress.com gwem Mon, 17 Aug 2009 17:10:23 GM The . central bank. on Friday injected 400 billion naira into the five . banks. , four of which it said had been close to collapse, and dismissed their chief executives in an effort to prevent a systemic banking crisis. ...  loomnie.com loomnie Sat, 15 Aug 2009 05:01:40 GM Mr Sanusi said the five . banks. had accounted for almost 90% of exposure to the . central bank's. so-called discount window, which allows . banks. to borrow in the short-term from the . central bank. to meet their needs. ...  prisonplanet.com admin Wed, 05 Aug 2009 11:04:21 GM In effect, the majority of these sales came from within the . Central Bank. Gold Agreement, with its signatories selling some 92 tonnes, but this was offset by net purchases from . Central Banks. and institutions in other countries which ... From Google Blog Search: "central banks"  news.google.com Bloomberg The central bank said it will gradually slow its $300 billion Treasury purchase program, initiated in March as part of an effort to cap borrowing costs, ... Flood of new Treasurys can't keep rally down CNNMoney.com all 78 news articles » news.google.com The Copenhagen Post Denmark's central bank , Nationalbanken, has lowered its benchmark interest rate by 0.1 percent bringing the rate to its lowest level ever at 1.45 percent. ... REFILE-UPDATE 3-Denmark cuts rates to ease upward crown pressure Forbes Denmark Central Bank Slashes Key Interest Rate ForexTV.com Denmark cuts key interest rate The Swedish Wire Forbes - Forbes all 36 news articles » news.google.com MarketWatch Some had proposed the Fed may take a page from other central banks and indicate the program will end on schedule, next month, but they may revive or extend ... Treasuries-Edge up in Asia as stocks dip, eyes on FOMC Reuters Treasurys under pressure CNNMoney.com Treasurys fall as Fed plans to ease debt purchases The Associated Press Bloomberg - Wall Street Journal - Wall Street Journal - Bloomberg all 596 news articles » From Google News Search: "central banks" What tools are used by the central banks to influence money supply? Q. What are the limits of the central bank s ability to control the quantity of money? Asked by WHOHA - Thu May 3 18:27:56 2007 - - 2 Answers - 0 Comments A. 1. Open market operations Buy bonds to increase money supple Sell to reduce 2. Adjust reserve ratio Increase the amount banks must keep in reserves rather than loading out to reduce money supple Decrease reserve ratio to increase money supply 3. Adjust Discount Rate This is the interest rates that the Fed charges other banks to take out loans Decrease DR to increase loans, money supply Increase DR to reduce loans, money supply Answered by darctangentia - Thu May 3 19:06:14 2007 theres an argument that the current financial crisis could take central banks independence away? Q. i heard it on the news before but why is this so? why is the current recession threathening central banks independence? regards Asked by Jonny T - Sun May 17 13:18:12 2009 - - 2 Answers - 0 Comments A. it doesnt, not in the UK anyway. Answered by jonny_5024 - Sun May 17 14:16:14 2009 What happens to inflation if all central banks print money together?
Q. What is the best asset to hold in a deflationary environment? Asked by v V - Fri Nov 21 09:46:13 2008 - - 1 Answers - 0 Comments A. M V=P GDP so if the velocity of money and gdp is unchanged the price level (inflation) increases in all countries and the exchange rates are unaffected. However V and GDP is not a constant in time nor the same in all countries so we need more information to know what would happen. Deflation usually occurs in economic down turns so corporate debt is risky, Government bonds are risk free, pay interest, and the principle will increase in value, so it is the asset of choice, which is why the interest rates on them keep falling. Answered by meg - Fri Nov 21 10:24:40 2008 From Yahoo Answer Search: "central banks" |
