A Primary Goal of Central Banks Is To

question 79

Multiple Choice

A primary goal of central banks is to:

• A) reduce the idiosyncratic risk that impacts specific investments.
• B) reduce systematic risk.
• C) keep stock and bond prices high.
• D) keep inflation rates high.

---

Definitions:

Nontoxic

Substances that do not pose a risk of harm or poison to humans, animals, or the environment.

Stable

A state of equilibrium or the absence of significant change, often describing systems that return to equilibrium after a disturbance.

Environmental Damage

Harmful effects on the natural environment caused by human activities, including pollution, habitat destruction, and depletion of resources.

Ultraviolet Radiation

A form of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, harmful to living organisms in high doses.