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Central Banks

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A central bank is a financial institution established by a national government for the purpose of regulating the monetary policies of that country. Responsibilities of central banks include: holding the reserves of commercial banks, controlling a country's monetary reserves, regulating a country's money supply, check collection, establishing interest rates, issuing legal tender, holding foreign currency reserves and monitoring exchange rates, and regulating governmental credit policies and government loans and borrowing.

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Copyright © 2011 Advameg, Inc.