One of the Main Roles of a Central Bank Is

question 95

Multiple Choice

One of the main roles of a central bank is:

• A) managing the nation's money demand.
• B) coordinating the banking system to ensure a sound economy.
• C) accepting deposits from households and other private individuals.
• D) funding federal government spending.

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Definitions:

Trade-Offs

Situations requiring a choice between options that have different advantages and disadvantages, involving compromises.

Optimal Order

The most efficient or cost-effective quantity of goods to order, taking into account factors such as demand, holding costs, and ordering costs.

Available Capacity

The amount of production capability or service availability that can be provided over a certain period of time.

Multiple Products

The strategy or situation of offering or managing a variety of different products instead of focusing on a single offering.