The Rationale for the Existence of Central Banks Is Mainly

question 50

Multiple Choice

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

• A)Financial systems are inherently stable
• B)They are needed for the supervision of banks
• C)Financial intermediation cannot occur without a central bank
• D)Financial markets are prone to periods of extreme volatility

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Definitions:

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of its outstanding shares.