What is one of the primary roles of a central bank?

The primary role of a central bank is to ensure economic stability, which encompasses fostering growth and maintaining employment levels. Central banks, such as the Federal Reserve in the United States or the European Central Bank in the Eurozone, utilize various tools including setting interest rates, conducting open market operations, and regulating the money supply to influence economic activity. By managing inflation and promoting financial stability, central banks aim to create an environment conducive to sustainable economic growth and low unemployment.

While providing credit to individuals, regulating consumer loans, and controlling stock market fluctuations may involve aspects of financial regulation and economic policy, these activities are more secondary functions or external impacts rather than the central focus of a central bank's mandate. The overarching goal remains ensuring that the economy operates smoothly, which inherently includes promoting growth and employment.