Functions of a central bank (not all functions are carried out by all banks):Implementing the basis of monetary policy·Monopoly on the issue of banknotes·Controls the nation's entire money supply·The Government's banker and the bankers' bank ("Lender of Last Resort")·Manages the country's foreign exchange and gold reserves and the Government's·stock registerRegulation and supervision of the banking industry·Setting the official interest rate - used to manage both inflation and the country's·exchange rate - and ensuring that this rate takes effect via a variety of policy mechanisms