What is the primary function of a "central bank" in an economy? A) To provide loans to individuals and businesses. B) To regulate the stock market and ensure fair trading practices. C) To manage the country's monetary policy, control inflation, and stabilize the financial system. D) To set fiscal policy and determine government spending levels.
What is the primary function of a "central bank" in an economy? A) To provide loans to individuals and businesses. B) To regulate the stock market and ensure fair trading practices. C) To manage the country's monetary policy, control inflation, and stabilize the financial system. D) To set fiscal policy and determine government spending levels.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:What is the primary function of a "central bank" in an economy?
A) To provide loans to individuals and businesses.
B) To regulate the stock market and ensure fair trading practices.
C) To manage the country's monetary policy, control inflation, and stabilize the financial
system.
D) To set fiscal policy and determine government spending levels.
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