Which financial decision is the central bank not responsible for?

The central bank is primarily responsible for functions that support the nation’s monetary policy and financial stability. One key role is controlling the money supply, which directly influences inflation, interest rates, and overall economic growth. Additionally, central banks are tasked with issuing currency, ensuring that there is enough money in circulation to meet the needs of the economy, and often engage in setting exchange rates for the purposes of maintaining economic stability.

Regulating the stock market, however, typically falls under the jurisdiction of securities regulators or market oversight bodies, rather than the central bank. While central banks may monitor financial markets to assess systemic risk, they do not directly regulate stock market activities or enforce rules related to securities trading. Therefore, the responsibility for regulating the stock market is not aligned with the core functions of central banks, making this the correct distinction in this question.