Theoretical Background: Central Bank Definition An institution designed to oversee the banking system and regulate the quantity of money in n the economy Means of monetary control: Reserve requirements Open-market Operations Discount rateTheoretical Background: Central Bank  Definition: An institution designed to oversee the banking system and regulate the quantity of money in the economy.  Means of Monetar y Control: ◦ Reserve Requirements ◦ Open -market Operations ◦ Discount Rate