What Is the Typical Role of a Central Bank

question 367

Multiple Choice

What is the typical role of a central bank?

• A) It serves as a bank for the national treasury.
• B) It regulates depository institutions.
• C) It serves as a lender of last resort.
• D) All of the above.

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Definitions:

Duties

Responsibilities or obligations that an individual, company, or government has under the law or contract.

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another (the principal) in business transactions.

Operation Of Law

An operation of law is a legal change that occurs automatically due to existing legal rules, rather than actions taken by the parties themselves.

Employee Status

A classification that determines if an individual is employed by a company, affecting their entitlement to employee benefits and protections under labor laws.