Doodeung Stock

  The Central Bank and the Base Rate Let's look at the central bank and the base rate, and also look at the big step and baby step about the base rate. There are central banks and commercial banks. Let's briefly review the concepts of central and commercial banks. A central bank is a bank that issues money, simply put, a bank that prints money. A typical example is the Bank of Korea in Korea. Commercial banks are banks that conduct deposits and loans. In Korea, for example, there are several commercial banks such as Woori Bank, Shinhan Bank, Kookmin Bank, and Hana Bank. The central bank's representative policies are monetary policy and interest rate policy. First, looking at monetary policy, the central bank provides money through the issuance of money. The central bank regulates the money supply by issuing money. Looking at the interest rate policy, the Monetary Policy Committee determines the base rate based on Korea. The Monetary Policy Committee is abbreviated as 'K