Bank — Central

: They use tools like adjusting interest rates or buying/selling government bonds (Open Market Operations) to influence economic activity.

: They monitor the overall financial system to prevent panics, bank runs, or systemic collapses. central bank

: They manage the government’s bank accounts, handle public debt, and issue government securities. : They use tools like adjusting interest rates

: They hold the legal monopoly on producing and distributing a nation’s banknotes and coins. handle public debt

: In times of crisis, they provide emergency liquidity to commercial banks that cannot borrow elsewhere, preventing total financial failure.

: Some central banks, like the U.S. Federal Reserve , have a "dual mandate" to also support full employment. Key Functions