The Primary Function of Central Banks Is To

question 14

Multiple Choice

The primary function of central banks is to:

• A)Increase risk and volatility to increase compensation
• B)Control inflation and help reduce business cycle fluctuations
• C)Increase the uncertainty that firms face in making investment decisions
• D)Eliminate the need for banks to collect financial information

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Definitions:

Physical Changes

Alterations in the physical state or appearance of a substance or organism that do not involve a change in its composition or identity.

Memory Processes

The mechanisms through which information is encoded, stored, and retrieved in the brain.

Spontaneous Recovery

The reappearance of a learned response after extinction has occurred.

Counterconditioning

A therapy technique used to replace an undesired response to a stimulus with a desired response, by associating the stimulus with a new, more desirable behavior.