Which of the Following Statements About the Central Bank Is

question 9

Multiple Choice

Which of the following statements about the central bank is TRUE?

• A) Only the central bank may hold foreign reserves and intervene officially in exchange markets.
• B) Central banks have little power to affect macroeconomic conditions.
• C) Today, central banks' reserves consist largely of gold.
• D) The Federal Reserve holds only a small level of official reserve assets other than gold.
• E) Central banks never inject money into the economy.

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Definitions:

High Birthrates

Situations in which the number of live births per thousand people in a population is significantly higher than the global average.

Public Services

Services provided by the government to its citizens, either directly or through the financing of private institutions, to meet basic needs and improve quality of life.

Modernization Theory

A theory suggesting that economic development and societal modernization follow a linear trajectory from traditional to modern states.

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The achievement of financial prosperity, often measured in terms of income, wealth, and market share.