Many Governments Give Their Central Bank Control Over Issuing Currency

question 71

Multiple Choice

Many governments give their central bank control over issuing currency because:

• A) printing currency can be profitable for a government so government officials may have a strong incentive to print too much.
• B) having large amounts of currency can lead to lower rates of inflation.
• C) central banks use the profits from issuing currency to finance their operations.
• D) the only way to distribute currency to banks is through the central bank.

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