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:

Timekeeper

A person or tool responsible for tracking the passage of time, often used in meetings, workshops, or sports to ensure activities adhere to a predefined schedule.

Guidelines

A set of recommended practices, instructions, or rules that aim to streamline particular processes or standards.

Virtual Meetings

Gatherings that take place over the internet using video conferencing software, allowing participants in different locations to meet in real-time.

Face-to-Face Meetings

Direct interactions between individuals in the same physical space, enabling more personal communication and non-verbal cues exchange.