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.

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Definitions:

One-Time Added Profit

A temporary increase in earnings that a company experiences from a singular event or transaction, not expected to recur in the normal course of business.

Anticipates

The action of foreseeing or preparing for future events or needs.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, crucial for decision-making in production and pricing strategies.

Marginal Benefit

The additional satisfaction or value obtained from acquiring one more unit of a product or service.