A central bank is a financial institution that is responsible for managing a country's monetary policy and regulating its financial system. The primary function of a central bank is to control the supply of money and credit in the economy, with the goal of promoting economic growth and stability. Central banks also act as the "lender of last resort" for banks and financial institutions, providing emergency funding in times of crisis. In addition, central banks play an important role in maintaining the stability of the exchange rate and managing the country's foreign reserves. Central banks operate independently from the government, with the goal of maintaining price stability and preserving the long-term health of the economy.

A central bank is a financial institution responsible for managing a country's money supply, interest rates, and currency stability. It acts as the government's banker and the lender of last resort to commercial banks. The central bank plays a pivotal role in monetary policy, controlling inflation, and maintaining economic stability. It issues currency, regulates and supervises banks, and influences economic growth through policies such as interest rate adjustments. Examples include the Federal Reserve in the United States, the European Central Bank, and the Bank of England. Central banks aim to foster economic stability and ensure the smooth functioning of a country's financial system.