The Rationale for the Existence of Central Banks Is Mainly

question 103

Multiple Choice

The rationale for the existence of central banks is mainly that:

• A) financial markets lack transparency.
• B) they are needed for the supervision of banks.
• C) financial intermediation cannot occur without a central bank.
• D) financial systems are prone to periods of extreme volatility.

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Definitions:

Big Five Model

A personality framework identifying five core traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions; individuals tend to seek stimulation and enjoy social interactions.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Trait Theories

Theoretical views stressing that personality consists of broad, enduring dispositions (traits) that tend to lead to characteristic responses.