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CENTRAL BANK   BANKERS ' BANK a bank which holds the main body of bank reserves of  a country and which is the ultimate reservoir of credit. These banks are  usually characterized by the following functions: 1. Keeping the banking reserves of all or a majority of the commercial  banks 2. Rediscounting and loaning against high-grade commercial paper and  other collateral for member banks 3. Performing fiscal services for the government 4. Monopolizing bank note issue  5. Controlling the gold reserves or other monetary reserves of the  country 6. Assisting in check collection Coordinating credit policy and other  governmental policy implementation Some central banks, however, are not absolutely restricted to dealings  solely with banks, especially those which evolved from original status as  private banks. Banks may conduct business directly with the public, such as 
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This note was uploaded on 04/10/2012 for the course ECON 101 taught by Professor Gonalez during the Spring '12 term at Université de Bourgogne.

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