What Is Typically Not Considered a Characteristic of a Central

question 25

Multiple Choice

What is typically not considered a characteristic of a central bank?

• A) The bank backs its currency with gold or silver.
• B) The bank has considerable control over the stock of money and uses this control to moderate fluctuations in credit conditions and prices.
• C) The bank regulates other banks.
• D) The bank lends a lot of money to the government.
• E) The bank serves as a lender of last resort to other banks by lending them money when no one else will.

---

Definitions:

Nature of Account

This describes the fundamental characteristics and purpose of an account in accounting, such as whether it's an asset, liability, revenue, expense, or equity account.

Journalize

The act of recording financial transactions in a company's journal, a step in the accounting process.

Withdraws

The action of taking money out of an account, or removing capital from a business by its owners.

Personal Use

Personal use refers to the utilization of property, assets, or services for individual rather than business or commercial purposes.