5/7 Talk about Korea’s central bank the Bank of Korea.

Korea’s central bank is the Bank of Korea (BOK). It was established back in 1950. The BOK’s main role is to formulate monetary policies.

* monetary policy: 통화 정책

ex> The central bank is responsible for a country’s monetary policies.

First, it sets the benchmark interest rate periodically. It pushes up the interest rate to curb inflation.

* periodically: 주기적으로

ex> I get a medical check-up periodically.

* curb inflation: 인플레이션을 억제하다, 물가 인상을 억제하다

ex> The government’s biggest challenge is to curb inflation.

This helps bring about price stability. It lowers the interest rate to boost the economy.

* boost the economy: 경기를 부양하다

ex> The new policies are designed to boost the economy.

The central bank’s key interest rate has a major ripple effect in the financial sector.

* major ripple effect: 중대 파급 효과

The BOK also prints and distributes currency.

* distribute currency: 통화를 유통하다

Plus, it manages the nation’s foreign exchange reserves. It lends money to the government and also other commercial banks as well. A new governor of the BOK is appointed every four years.

* lend money to: ~에 자금을 대출하다

ex> There wasn't any bank that would lend money to me.

@ Don’t be too hard on yourself.  너무 자책하지 마.

<HOMEWORK>

1. We organize this event periodically.

2. The Bank of Korean increased the interest to curb inflation.

3. Tax cuts can help boost the economy.

4. I regretted lending money to him.