What do central banks do?

A central bank is like a bank for banks Just like you and your savings account... ...banks also earn interest when they leave money with the central bank Commercial banks have these things called reserves So that’s a bit like their cash on hand Commercial banks lend those excess reserves to each other at an interest rate... ...and they also can deposit their excess reserves at the central bank And when they do that, they can earn an interest rate Ordinary people can’t access the interest rate on the excess reserves... ...but it still affects them And that’s the idea