The Primary Objective of Most Central Banks in Industrialized Economies

question 70

Multiple Choice

The primary objective of most central banks in industrialized economies is:

• A)High securities prices
• B)Low unemployment
• C)Price stability
• D)A strong domestic currency

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories, and meeting short-term liabilities.

Issue Date

The date on which a document, such as a check, bond, or stock, is issued or goes into effect.

Simple Interest

Interest calculated only on the initial amount of money deposited or borrowed, without compounding.

Treasury Bills

Promissory notes issued (at a discount to face value) by the federal government or a provincial government to borrow money for a short term.