The main responsibility of a Central bank is: Fiscal but not monetary policy Monetary but not fiscal policy Neither monetary or fiscal policy Both monetary and fiscal policy

Q: What is the primary role of a central bank in a country's banking system? a) Issuing credit cards b)…

A: Central banks play a crucial role in overseeing the banking system, ensuring compliance with…

Q: Which of the following is one of the Five Fundamental Questions? Multiple Choice O O How much should…

A: Economics refers to the social science that focuses on the production, distribution, and consumption…

Q: In what respects is the central bank like a private banking institution and it what respects is it…

A: The central bank is an apex banking institution in a country. It is responsible to regulate the…

Q: There are two types of open market operations carried out by the central bank, dynamic and defensive…

A: Open market operations, sometimes known as OMO are when a central bank buys or sells short-term…

Q: The mint is the central bank in America. True or false

A: The Fed or federal reserve is the central bank of the United states of America, It was established…

Q: Which of the following is not a function of the central bank? Select one: a. The issuance of bank…

A: Federal reserve bank, Fed is the central bank of US.

Q: With the use of a central bank, which of the following becomes less and less important over time?…

A: The question is asking which of the listed items becomes less important over time with the use of a…

Q: When a central bank uses its powers over the banking system to engage in “against the business…

A: Monetary Policy refers to a policy that influences the economy by manipulating the banking system's…

Q: Which of the following is NOT an example of monetary policy       A. Lowering the discount rate…

A: Monetary policy is the policy which leads to change in the monetary component (interest rate) in the…

Q: Open market operations conducted by central banks involve: a) Buying and selling government…

A: Open market operations done by the central bank involves open market buying and selling of…

Q: The Central Bank does all but which of the following? 1) conducts monetary policy 2) promotes…

A: Central Bank:The central bank manages the collection of money. The central bank prints money. The…

Q: One of the advantages of monetary policy is its speed and flexibility, but there are limitations.…

A: Monetary policy is the policy of the central bank of the economy to influence the money supply in…

Q: In our depiction of the money market, the money supply is controlled by which of the following?…

A: The entire amount of money that is at any given time money in circulation is known as the money…

Q: Why was the European Central Bank less aggressive than the U.S. Federal Reserve Bank in responding…

A: Answer- Need to find- Why was the European Central Bank less aggressive than the U.S. Federal…

Q: Match each of the economic phenomena or policy goals to the associated monetary policy. Each item…

A: Monetary policy:It refers to the actions and tools that a central bank or monetary authority uses to…

Q: Which of the following are objectives that the Federal Reserve tries to achieve when setting…

A: Monetary Policy is a policy implemented by the central bank of a country (such as the Federal…

Q: The two most important functions of central banks are to:   Question 12 options:   a)  execute…

A: Central bank is referred as bankers bank. It helps commercial banks and the financial system at the…

Q: True/False  Central Bank directly deals with the depositors and consumers in the economy.

A: A central bank is a type of financial organization in charge of overseeing the monetary policies and…

Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…

A: Central banks controls the money supply and maintain the inflation rate at desirable level through…

Q: Which of the following is an example of monetary policy? The government cuts taxes Defense spending…

A: In the event of a recession, the government uses an expansionary monetary policy to increase the…

Q: Which of the following is a tool of the Federal Reserve’s monetary policy?   Group of answer…

A: The policy through which the central bank of the nation takes action for influencing the amount of…

Q: Question 3 Monetary policy refers to the actions the Central Bank takes to manage the money supply…

A: Central bank takes the major decisions of the economy with the help of monetary policy.

Q: What are the main functions of a Central Bank? To reduce unemployment, promote financial stability,…

A: Money is important as it is used to make daily transactions and for making payments. It represents…

Q: Which of the following is considered to be a relatively drastic tool of monetary policy? altering…

A: Discount rate or interest rate would be drastic tool because it would affect the aggregate demand to…

Q: What are the primary functions of a central bank? providing banking services to businesses and…

A: When it comes to monetary policy and financial stability, central banks have a considerable impact…

Q: argued that the central bank should be independent of the government. Discuss these arguments.

A: In nature, a central bank is a semi-independent body that is influenced by government choices and…

Q: Which interest rate is most likely to serve as the target interest rate by a Central Bank?   a)The…

A: The interest rate which is most likely to serve as the target interest rate by a central bank is the…

Q: Explain how a central bank can control credit through bank rate and open market operation

A: Open Market Operation is a traditional way to control the credit in the market used by the central…

Q: Which of the following is not a central bank?   a.  The Bank of England     b.  The Bank of Japan…

A: A central bank is a financial institution that provides banking services to the government and…

Q: Contrast the actions a central bank would take to increase the quantity of money in the economy with…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: Current U.S. monetary policy is best described as:   Aimed at keeping inflation low and stable and…

A: To control the money supply and achieve sustainable economic goals central banks of the country use…

Q: Why would it be problematic for a central bank to havea primary goal of maximizing economic growth?

A: A central bank conducts the monetary policies of a country.  It also regulates the commercial banks.

Q: What is the primary cause of booms and busts in a market economy with a central bank?

A: Boom and bust refer to a cycle of economic expansion and contraction. A "boom" is a period of…

Q: Explain the main theories of central bank behaviour.

A: Main theories of central bank behavior 1)Monetary stability For monetary stability,central bank may…

Q: riefly explain how a Central Bank will control the Money supply within an economy.

A: The money supply refers to the stock of money in an economy at any point of time. It is fixed and…

Q: The primary purpose of the central bank's monetary policy is: a. exchange rate b. price stability c.…

A: Inflation and unemployment are the two major factors that affect the growth of any economy. So the…

Q: There are several ways that governments can increase or decrease the money supply. Match the…

A: Money supply is the stock of money in circulation in an economy in a given time period.Open market…

Q: Discuss two monetary policies that could be implemented by the central bank which would have the…

A: Monetary policy: Money related approach is the macroeconomic strategy set somewhere around the…

Q: different

A: The Correct answer is option 'B' - generate, stimulate, or hurt the economy.

Q: Describe a situation where a central bank would want to implement contractionary monetary policy.

A: Contractionary monetary policy refers to the measures taken by a central bank to decrease the money…

Q: Which of these is an alternative to monetary policy and aims to reduce inflation?

A: alternative to monetary policy is fiscal policy which is done by government of a country which…

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

Q: QUESTION: Based on the debate above, discuss on the conduct of Monetary Policy whether it should be…

A: Monetary policy refers to the regulation of the money supply by the central bank to bring about…