Central bank

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/central-bank

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the institutional mandate?Manages monetary policy, supervises financial institutions, and ensures economic stability
2. What is the core power?Exclusive authority to increase the monetary base, influencing national money supply
3. What is a central bank and why is it important?A central bank is a special bank that belongs to the country. It manages the money, sets interest rates, and keeps the economy stable so people can buy things.
4. How does a central bank create money?Central banks can create new money by buying or selling government securities and by setting rules for other banks. This lets them control how much money is in the economy.

Monetary Policy: The actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.
Price Stability: A state where inflation is low and predictable, preserving the purchasing power of currency.
Lender of Last Resort: An institution's role in providing liquidity to financial institutions facing temporary shortages.
Open Market Operations: The buying and selling of government securities by a central bank to influence the money supply.