File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/central-bank.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Central Bank
</title><!-- TemplateEndEditable -->
<meta name="description" content="Economic Growth - Define Economic Growth" />
<meta name="keywords" content="Economic Growth - Define Economic Growth" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Central Bank
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-84.jpg" alt="Central Bank" /></div>
<p>
Central Bank, a banking institution that is the focus of the financial system of a country, usually controlled wholly or partly by the Government as the principal regulator of credit.<br /><br />The fundamental task of a central bank is to control the commercial or joint-stock banks so as to support the Government's monetary policy: it must therefore remain a distinct part of the monetary system, and does not usually (with minor exceptions) undertake ordinary banking business.<br /><br />The functions of a central bank are mainly in four groups:<br /><br />(1) Control of the note issue. It usually has a monopoly of the note issue (the Scottish banks have the right to issue notes provided-they are 'covered' by Bank of England notes). In Britain the note issue is regulated by the Currency and Bank Notes Act of 2004, which empowers the Bank to issue a stated amount of notes backed by securities and an unspecified amount backed by gold. The amount backed by gold is small and the authorized note issue is therefore virtually entirely issued against securities. This issue unbacked by gold is known as the fiduciary issue ('issued in faith'), the volume of which is fixed by Parliament in accordance with what are thought to be the needs of the economy.<br /><br /> (2) The banker's bank. A central bank stands in a similar relation-ship to commercial banks as the commercial banks to their customers. Commercial banks hold deposits with the central bank which they regard as cash; they may also look to the central bank either directly or indirectly (as in Britain through the recall of loans to the discount market) for temporary accommodation (loans) if there is a shortage of cash reserves. Thus, by providing these services for commercial banks the central bank is the ultimate source of cash. It is through this control that the central bank is able to influence the volume of credit.<br /><br />The Government bank. The central bank of a country usually conducts the ordinary banking business of the Government. In Britain the Bank of England is owned by the Government; in some countries the Government owns a large interest; in the U.S A. the Federal Reserve Board is private but is controlled by the state through the appointment of Governors.<br /><br />Other functions: A central bank also usually conducts foreign exchange business (buying and selling foreign currencies, operation of exchange control, etc.); undertakes open market operations; acts as a 'lender of last resort and fixes the official Bank rate or rate of discount, often in conjunction with the Government. <br /><br />
</p>
<h2>
More Economic Growth - Define Economic Growth
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-754.jpg" alt="Central Bank" /></div>
<li><a href="/chamberlin.php"> Chamberlin E H </a></li>
<li><a href="/collective-bargaining-contd.php"> Collective Bargaining Contd </a></li>
<li><a href="http://www.nasdaq.com/article/eu-cuts-uk-2012-economic-growth-budget-deficit-forecasts-20120511-00106" target="_blank"> Nasdaq News: Eu Cuts Uk 2017Economic Growth, Budget Deficit Forecasts </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.economywatch.com/economic-report/uk.html" target="_blank"> Uk Economic Report , Economy Watch </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Central Bank
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="<spc: %meta_title />" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/catallactics-science.php" title="Catallactics Science" alt="Catallactics Science">Catallactics Science</a></li><li><a href="/census-count.php" title="Census Count" alt="Census Count">Census Count</a></li><li><a href="/central-bank.php" title="Central Bank" alt="Central Bank">Central Bank</a></li><li><a href="/chamberlin.php" title="Chamberlin" alt="Chamberlin">Chamberlin</a></li><li><a href="/charging-what.php" title="Charging What" alt="Charging What">Charging What</a></li><li><a href="/cheque-an-instrument.php" title="Cheque An Instrument" alt="Cheque An Instrument">Cheque An Instrument</a></li><li><a href="/cif-cost-insurance.php" title="Cif Cost Insurance" alt="Cif Cost Insurance">Cif Cost Insurance</a></li><li><a href="/classical-economists.php" title="Classical Economists" alt="Classical Economists">Classical Economists</a></li><li><a href="/classical-economists-contd.php" title="Classical Economists Contd" alt="Classical Economists Contd">Classical Economists Contd</a></li><li><a href="/classical-economists-contd.php" title="Classical Economists Contd" alt="Classical Economists Contd">Classical Economists Contd</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Blackbush Publishing Unlimited</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>