As the official national bank of each country, the central bank regulates the money supply and credit,

issues currency, and manages the rate of exchange. The central bank also controls the amount of
financial reserves held by private banks. The central bank may also function as the lender of last resort
in the event of a financial crisis. Central banks implement monetary policies by increasing or decreasing
the money supply through one of the following methods:
(1) Buying and selling money in the banking system;
(2) Increasing or decreasing the interest rates on funds loaned to commercial banks; or
(3) Buying and selling government securities.
As an example, the Federal Reserve Bank of the United States, formulates and conducts U.S. monetary
policy by influencing the money supply and credit conditions in the U.S. economy. The Feds main goal is
to keep inflation low.