What is the European Central Bank?

Definition of European Central Bank: This bank is also popularly known as ECB. It is the bank used by the Monetary Union of Europe. This bank is similar to the Federal Bank in Europe. The Central Bank of Europe located in Europe manages and then administers the Euro. The Euro system consists of several central banks from every country in the Euro zone. The Central Bank in Europe is an autonomous and has an authority for setting fiscal policy. The Euro system is used for minting, distributing the coins and notes and for printing. Euro system is also used for operating the payment systems. This bank sets the interest rates of the Euro zone to preserve price stability and also for controlling the rise in price. This bank has a board made of six people. A president is elected for managing this board. The central bank and the board governors from every participating country make the fiscal policy decisions.