Central Banks Have Two Essential Functions

question 7

Multiple Choice

Central banks have two essential functions:

• A) managing the money supply and acting as a lender of last resort.
• B) creating full employment and acting as a lender of last resort.
• C) regulating financial markets and creating full employment.
• D) regulating financial markets and collecting taxes.

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Definitions:

Vacation Privileges

Vacation privileges refer to the policy and benefits related to employees' eligibility and entitlement to take paid time off for personal rest, travel, or leisure.

Operations

The day-to-day activities required for continued business functioning, focusing on manufacturing, providing services, or other core business processes.

Social Security Taxes

Taxes collected by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Taxes

Taxes deducted from employee paychecks and also matched by employers to fund the Medicare program, a federal health insurance program for individuals who are 65 and older and for some younger people with disabilities.