Which of the Following Statements About the Central Bank Is

question 34

Multiple Choice

Which of the following statements about the central bank is TRUE?

• A) Only the central bank may hold foreign reserves and intervene officially in exchange markets.
• B) Central banks have little power to alter macroeconomic conditions.
• C) Today, central banks' reserves consist largely of gold.
• D) The Federal Reserve holds only a small level of official reserve assets other than gold.
• E) Central banks never inject money into the economy.

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