Central banking refers to the institution responsible for managing a country's currency, money supply, and interest rates. It plays a crucial role in maintaining economic stability and controlling inflation. The central bank, such as the Federal Reserve in the United States, implements monetary policy to influence the economy by adjusting interest rates and regulating the banking system. In addition to managing monetary policy, central banks also act as a lender of last resort to commercial banks during financial crises. They ensure the stability of the financial system and promote trust in the national currency, which is vital for economic growth and development.