central bank
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central bank
A national or supranational institution that is responsible for the monetary and currency policy of a country or currency area. It issues money, controls the money supply, and supervises other banks.
Die Europäische Zentralbank hat ihren Sitz in Frankfurt am Main.
The European Central Bank is headquartered in Frankfurt am Main.
The word is composed of 'zentral' (central) and 'Bank' (bank). So it literally refers to a bank that has a central function in the financial system of a country or region.
Die Zentralbank ist für die Stabilität der Währung verantwortlich.
The central bank is responsible for the stability of the currency.
Common verbs used with 'Zentralbank' (central bank) are 'den Leitzins erhöhen/senken' (to raise/lower the key interest rate), 'die Geldpolitik steuern' (to manage monetary policy), and 'für Preisstabilität sorgen' (to ensure price stability).
Viele hoffen, dass die Zentralbank den Leitzins bald senken wird.
Many people hope that the central bank will lower the key interest rate soon.
'Zentralbank' (central bank) is a technical term from economics and politics. You often find the word in the news, specialist articles, and official reports.
In den Wirtschaftsnachrichten wurde über die neueste Entscheidung der Zentralbank berichtet.
The latest decision by the central bank was reported in the business news.
bank / bench
'die Bank' and 'die Zentralbank' both have to do with money and the financial system. A 'Bank' is usually a company where individuals or businesses have an account, transfer money, or get a loan. A 'Zentralbank' is not a normal bank for customers, but a special national or supranational institution. For example, it controls monetary policy and supervises other banks. Learners may confuse the words because both contain 'Bank'. A practical tip: you go to the bank for your own account; the central bank works for the currency and the entire banking system.
Die Zentralbank entscheidet, wie viel Geld im Umlauf sein soll.
The central bank decides how much money should be in circulation.
Vor der Reise hat mein Vater bei der Bank Geld abgehoben.
Before the trip, my father withdrew money from the bank.