4 ms·
Normal Operations consist of (mainly) controlling the interest rate at which a central bank will pay out on reserves (cash / assets) that other banks deposit in
by tmountain 4y ago
Normal Operations consist of (mainly) controlling the interest rate at which a central bank will pay out on reserves (cash / assets) that other banks deposit in it. This is known as the base rate / reserve rate, and varying this rate can vary the reserves at the central bank, and therefore the money in the economy.