Which best describes a central bank's primary goals?

A) controlling inflation and reducing unemployment

B) reducing unemployment and maintaining cash flow

C) controlling stagflation and reducing unemployment

D) managing credit and ensuring the money supply's liquidity

Question

Andy Stanley

History

15 June, 03:53

Which best describes a central bank's primary goals?

A) controlling inflation and reducing unemployment

B) reducing unemployment and maintaining cash flow

C) controlling stagflation and reducing unemployment

D) managing credit and ensuring the money supply's liquidity

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Answers (1)

Know the Answer?

Kasen Huynh · Answer 1

The central bank is called "the lender of last resort," which means it is accountable for giving its economy with reserves when commercial banks cannot shelter a supply shortage. On the other hand, the primary goal of central banks is to offer their countries' currencies with price constancy by controlling inflation. So the answer is A.

Which best describes a central bank's primary goals?A) controlling inflation and reducing unemploymentB) reducing unemployment and maintaining cash flowC) controlling stagflation and reducing unemploymentD) managing credit and ensuring the money supply's liquidity

Which best describes a central bank's primary goals?

A) controlling inflation and reducing unemployment

B) reducing unemployment and maintaining cash flow

C) controlling stagflation and reducing unemployment

D) managing credit and ensuring the money supply's liquidity