Central Bank

A central bank is a financial institution of fundamental importance in a country’s monetary and banking system. Its main function is to regulate and supervise the money supply and monetary policy of a nation. The central bank acts as a monetary authority and plays a key role in maintaining the economic and financial stability of the country.

In the European system, known as the Eurozone, the European Central Bank (ECB) is the body responsible for monetary policy for the Eurozone countries. The ECB is a supranational institution that operates at the level of the European Union and was established to ensure price stability and support economic growth in the euro countries.

Correlated words

Financial Instrument

A Financial Instrument is a tool or asset used in financial markets for investment, trading, or funding activities, like stocks or bonds.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities issued by governments or institutions to raise funds for various financial purposes.

Deficit

A Deficit in economics signifies a situation where expenses exceed revenues, resulting in a state of financial loss.

Default

Default occurs when an entity fails to meet its debt obligations, potentially leading to bankruptcy or other financial repercussions.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.