The Primary Function of Central Banks Is To

question 22

Multiple Choice

The primary function of central banks is to:

• A) increase risk and volatility to increase compensation.
• B) control inflation, as well as help reduce the size and frequency of business cycle fluctuations.
• C) increase the uncertainty that firms face in making investment decisions.
• D) eliminate the need for banks to collect financial information.

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Definitions:

Asserted

Stated confidently or forcefully as a fact or belief.

Unasserted

Not confidently or forcefully stated or expressed.

Connective

A word or phrase in logic that connects propositions, such as "and," "or," and "not."

Asserted

To declare affirmatively; to state as a fact.