1. Introduction to Central Banks and the Stock Exchange
IGCSE Economics
Introduction to Central Banks and the Stock Exchange

2. Starter – Money, Money, Money
What are the qualities of ‘money’?
Acceptability
Durability
Portability
Divisibility
Scarcity
Look at your item
Could it be used as money?
Why?

3. Learning Outcomes
To be able to describe the functions of Central Banks in the economy
To understand the difference between commercial and central banks
To be able to describe the functions of stock exchanges in the economy

4. Introduction to Central Banks

5. Review – Commercial Banks
Everybody tell me something that you learned about banks….

6. Central Banks – What are they?
Central Banks are owned by the government
Although they are often run independently
They play a key role in the economy

7. Central Banks generally have two core economic purposes…..
Monetary Stability
Financial Stability
Central Banks have different functions to ordinary banks which help them to meet these objectives……

8. Task – 5 mins In pairs look at the questions on the sheet
Can you discuss and come up with answers to the questions?
Are there any other questions you have?
How do these functions help the central bank to achieve ‘financial stability’?
Which of these functions is most important in achieving ‘monetary stability’?